Effective Tax Research Articles

Effectiveness and Contribution of Local Taxes to Cirebon Regional Revenue

One of the cities that has a lot of potential for local revenue (PAD) is Cirebon City. Various events, such as concerts, dramas, entertainment, and national and international exhibitions, are organized in Cirebon City. The entertainment tax target for Cirebon City has increased as a result of the enactment of Law No. 1 Year 2022 on Financial Relations between the Central Government and Local Government. Descriptive quantitative approach methodology was used in this study. PAD of Cirebon City in 2017-2022, projection of entertainment tax revenue, and realization of entertainment tax are the statistical data used in this study. According to the study findings, the entertainment tax of Cirebon City has an effectiveness rate of 72.87% from 2017 to 2022 despite having less stringent requirements and a very low contribution rate of 1.42%. In order to help the Cirebon City Government to maximize the potential of its area to generate tax revenue in accordance with the predetermined objectives, this study intends to provide knowledge related to the analysis of the effectiveness and contribution of entertainment tax. Keywords: Contribution, Effectiveness, Entertainment Tax, Local Tax, Local Revenue.

Determining Resident Status for Taxation in the USA

This paper examines international taxation practices, in particular focusing on the taxation of individuals as well as tax tools used in industrialized countries to optimize tax collection and stimulate economic development. It is also directly relevant for representatives of ministries and departments involved in managing the state budget. The experience of the United States, with its developed and comprehensive tax control system, could be useful in organizing more effective taxation of foreign individuals, including migrant workers residing on the territory of the Russian Federation.

Effectiveness of Corporate Tax Incentives in Attracting Investments

Corporate tax incentives are widely used by developing nations to attract investments, stimulate economic activity, and drive industrial growth. This study investigates the effectiveness of these incentives in achieving their intended goals by analysing macroeconomic data from a diverse sample of developing economies over the past two decades. The research focuses on the relationship between tax policies and key investment indicators such as foreign direct investment (FDI), domestic capital formation, and economic growth metrics like GDP, employment, and productivity. Using a combination of panel data regression and time-series econometric techniques, the study identifies critical factors that mediate the success of tax incentives, including the quality of governance, infrastructure development, and ease of doing business. Preliminary findings suggest that while corporate tax incentives are effective in attracting short-term investments, their long-term impact on economic growth is contingent on broader economic and institutional frameworks. The analysis also highlights potential trade-offs, such as revenue loss and inequality, stemming from poorly designed tax policies. This paper contributes to the literature by providing empirical evidence on the conditional effectiveness of tax incentives and offering actionable policy recommendations. The findings aim to assist policymakers in designing balanced tax regimes that promote sustainable economic growth without undermining fiscal stability.

Pajak daerah, Retribusi Daerah, dan Dana Alokasi Khusus terhadap Belanja Modal Provinsi Se-sumatera

The purpose of this study was to test and analyze the effect of local taxes, local levies, special allocation funds on capital expenditures of the Sumatra provincial government in 2018-2022. Used for 10 provinces in Sumatra. For five years, fifty samples were used. The test analysis methods used are Measurement model evaluation, convergent validity test, significance test, R-square testing and F-square testing. The results of this study indicate that local taxes, local levies, and special allocation funds have a positive effect on capital expenditure.

The path to green economy: Do environmental taxes and renewable energy transition matter in OECD countries?

This study examines the effect of environment tax and renewable energy transition on the green economic growth of 37 OECD countries from 1990 to 2021. The empirical results show that environmental tax has a non-linear impact on green economic growth. The nonlinearity is characterised by a U-shape relationship, indicating that at the initial stage, environmental taxes negatively impact green growth. The impact then becomes positive and significant at a later stage when environment tax reaches a threshold of 3.53 % for production-based green growth and 2.46 % for demand-based green growth. By replacing fossil fuels in electricity generation, heating, transportation, and industrial processes, the study finds that transitions to renewable energy improve air pollution and the green economy. The estimated results are reassuringly robust to alternative measures of green economic growth (production-based and demand-based Co2 productivity) and various estimators such as instrumental regression, fixed effect instrumental regression, Machado and Silva quantile regression and JKS Granger non-causality results. The study recommends that since environmental taxes do not improve green economic growth immediately, it is important to gradually implement these taxes to allow industries and consumers time to adjust and invest in green alternatives.

Effect Of Tax Incentives On The Performance Of Manufacturing Firms In Nairobi County, Kenya

Over the last few decades, the contributions of the firms on the performance of the largest economies in the world have beamed the searchlight on the uniqueness of the manufacturing firms; and this has succeeded in overruling previously held views that firms were only smaller versions of larger companies. Since the 1960s to date, manufacturing firms have been given due recognitions especially in the developed nations for playing very important roles towards fostering accelerated economic performance, development and stability within several economies. Manufacturing firms in Kenya face challenges with regard to financing, disproportionate regulatory burdens and competition failures compared to large entities. The main objective of this study was to determine the effect of tax incentives on performance of manufacturing firms in Kenya. The specific objectives were to establish the effect of investment allowances, excise duty incentive and customs incentive on performance of manufacturing firms in Kenya. The study was guided by the, Normative Theory, Political System Theory and the resource-based view. This study was focused on the 150 large manufacturing firms in Nairobi County. The study employed explanatory research design. Both descriptive and inferential statistics for the data obtained was analyzed. The descriptive statistics was done using Statistical Package for Social Sciences (SPSS) and was presented by means, standard deviation and frequency tables. A regression model was used to evaluate the relationship between the dependent and independent variables of the study. The regression analysis revealed that investment allowances (B = 0.262, p = 0.000), excise duty incentives (B = 0.311, p = 0.000), and customs incentives (B = 0.089, p = 0.037) all have positive and significant relationships with the performance of manufacturing firms. The study concludes that investment allowances, excise duty incentives, and customs incentives significantly and positively influence the performance of manufacturing firms, highlighting the critical role of fiscal incentives in driving industrial growth and development. The study recommends maintaining and enhancing Investment allowances, Excise Duty Incentives, and Customs Incentives to support manufacturing firms in Nairobi County, Kenya, as these incentives have shown significant positive effects on firm performance. Additionally, policymakers should prioritize clear communication and accessibility of these incentives while tailoring them to address specific industry needs, ensuring that manufacturing firms can readily access and benefit from them, ultimately fostering economic growth and development in the region

Evaluating the effectiveness of environmental taxes: A Case study of carbon pricing in the UK as a tool to reducing Greenhouse Gases Emissions

This paper evaluated the effectiveness of environmental taxes and adopted a case study approach which used carbon pricing in the UK as a tool to reducing Greenhouse Gases Emissions. The objectives of the research are to determine the effect of carbon pricing on greenhouse gases emissions in the United Kingdom, evaluate how fossil energy depletion affect greenhouse gases emissions in the United Kingdom and ascertain the effect of total energy consumption from different energy mix on greenhouse gases emissions in the United Kingdom. The paper used an ex post facto research design and the estimated model was estimated using the ordinary least squares regression technique. The data were sourced from different sources and covered the period between 2010 and 2023. The findings of the study revealed that carbon pricing is an effective tool for reducing greenhouse gases emissions in the UK while renewable energy is also a significant tool for reducing greenhouse gases emissions. Based on these findings, the study recommends that the government should consider increasing the carbon price incrementally over time to ensure that it continues to effectively discourage high-emission activities.

Addressing the challenges of taxation E-commerce and digital services in the globalized economy

The rapid expansion of e-commerce and digital services has fundamentally transformed the global economic landscape, presenting unprecedented challenges for traditional taxation frameworks. This comprehensive review examines the complexities of implementing effective taxation mechanisms in the digital economy, with particular emphasis on cross-border transactions and digital service providers. The research analyzes current international taxation policies, regulatory frameworks, and emerging solutions adopted by various jurisdictions to address the challenges of digital commerce taxation. Through systematic evaluation of existing literature and case studies, this review identifies key obstacles including permanent establishment definitions, value creation assessment, and jurisdiction determination in digital transactions. The findings reveal significant gaps in current taxation systems and highlight the need for international cooperation in developing standardized approaches to digital economy taxation. The study demonstrates that while some countries have implemented interim measures such as digital service taxes, a more cohesive global framework is essential for sustainable tax revenue collection in the digital age. This review contributes to the growing body of knowledge on digital economy taxation and provides valuable insights for policymakers, tax administrators, and researchers working to develop effective solutions for the evolving challenges of e-commerce taxation.

Study on the Substitution Effect of Property Tax on Land Finance—Analysis based on Shanghai and Chongqing Reform Pilots

This paper aims to study the substitution effect of property tax on land finance through the pilot property tax reform implemented in Shanghai and Chongqing. Based on the theoretical foundation of analysing the impact of property tax on land finance, this paper selects the annual panel data of 35 large and medium-sized cities published by the National Bureau of Statistics (NBS) from 2006 to 2017, and analyses the impact of the pilot property tax reform on the dependence on land finance in Chongqing and Shanghai and its extent. The findings show that the pilot effect of property tax reform in Shanghai is consistent with theoretical expectations, while the opposite is true for Chongqing; under a reasonable property tax system, the substitution effect of property tax reform on land finance gradually increases over time. In the conclusion, the paper puts forward relevant suggestions.

Analisis Kontribusi Pajak Penunjang Sektor Pariwisata Di Kota Banjarmasin

This study examines the contribution and the impact of restaurant, hotel, entertainment, and parking taxes on Banjarmasin's local tax revenue and income, using quantitative descriptive methods and double linear regression analysis. According to the study's findings, the local tax contribution from restaurants falls into the middle range, that from hotels falls into the lower range, and that from entertainment and parking taxes. Restaurant taxes make up a smaller portion of local government revenue than hotels, entertainment taxes, and parking fees. While restaurant, entertainment, and parking taxes partially have no major influence, hotel taxes have a significant impact. 81% of the local government revenue in the Banjarmasin city area is influenced by the combined effects of the restaurant tax, hotel tax, entertainment tax, and parking tax. The remaining 19% is influenced by other factors.

Compliance Behavior in Environmental Tax Policy

This study examines compliance behavior in the context of environmental tax policies, highlighting the essential role that these policies play in achieving the objectives of the Sustainable Development Goals (SDGs). Environmental taxes are crucial instruments for reducing environmental damage and increasing energy efficiency. Nevertheless, taxpayer compliance, which is impacted by several variables, including social acceptability, regulatory quality, and perceptions of fairness, is a key component of these policies’ efficacy. In contrast to earlier research, which frequently concentrated on certain kinds of tax or discrete policy mechanisms, this study takes a broad approach, looking at a range of environmental taxation instruments. Emerging trends, significant factors influencing compliance behavior, and noteworthy contributions from eminent authors and organizations are all identified via bibliometric and scientometric analyses. To create fair and effective environmental tax policies, interdisciplinary approaches and international collaboration are required. Along with presenting policies to improve environmental regulation compliance, this study offers insightful advice for businesses that can help them innovate toward sustainability and adjust to shifting policy. It also provides a solid theoretical base for future researchers by highlighting important areas that require more investigation, especially when it comes to the wider effects of environmental taxes on various industries.

Create or squeeze out? The effect of environmental protection tax on labor demand and labor demand transfer: evidence from China

Create or squeeze out? The effect of environmental protection tax on labor demand and labor demand transfer: evidence from China

Standardising the measurement of e-cigarette tax rates in the USA (2nd edition), 2010–2023

Introduction30 states enacted e-cigarette taxes by the end of 2023. E-cigarette tax schema in the USA vary, in contrast to cigarette taxes that are standardised as an excise tax amount...

Who bears the burden of real estate transfer taxes? Evidence from the German housing market

This paper examines the effects of real estate transfer taxes (RETT) on property prices using a rich micro dataset of roughly 17 million German properties for the period from 2005 to 2019. Our empirical analysis exploits variation in RETT rate hikes across German states and over time. Our monthly event study estimates indicate a price response that strongly exceeds the change in the tax burden for single transactions. Twelve months after a reform, a one percentage point increase in the tax rate reduces property prices by on average 3%. Price effects are larger for apartments (−4%) than for single-family houses (−2%). Exploring potential mechanisms, we provide evidence that different holding periods are the main driver of the differential price effect between property types.

Doubly robust estimation of policy-relevant causal effects under interference

Abstract To comprehensively evaluate a public policy intervention, researchers must consider the effects of the policy not just on the implementing region, but also nearby, indirectly affected regions. For example, an excise tax on sweetened beverages in Philadelphia, Pennsylvania was shown to not only be associated with a decrease in volume sales of taxed beverages in Philadelphia, but also an increase in sales in nontaxed bordering counties. The latter association may be explained by cross-border shopping behaviours of Philadelphia residents and indicate a causal effect of the tax on nearby regions, which may drastically offset the total effect of the intervention. In this paper, we adapt doubly robust difference-in-differences methodology to estimate distinct causal effects on the implementing and neighbouring control regions when they are geographically separable and data exists from an unaffected control region. Our approach adjusts for potential confounding in quasi-experimental evaluations and relaxes standard assumptions on model specification while accounting for geographically separable interference, repeated observations, spatial correlation, and unknown effect heterogeneity. We apply these methods to evaluate the effect of the Philadelphia beverage tax on taxed beverage sales in 231 Philadelphia and bordering county stores. We also use our methods to explore effect heterogeneity across geographical features.

Greening corporate practices: a review of tax and subsidy influence on pro-environmental behaviors across industries

PurposeThis study examines conditions under which taxes and subsidies designed to mitigate corporate environmental impact positively influence corporate pro-environmental behavior (CPEB) adoption, considering unique dynamics within different industries.Design/methodology/approachA systematic literature review was conducted on 171 articles. Articles were coded using an inductive grid for comprehensive examination.FindingsTaxes generally positively influence CPEB adoption, but reduced positive or even negative effects can arise. Subsidies, while often facilitating the achievement of environmental goals, variously impact CPEB. Explanations for variations include the level of taxation or subsidy, economic agent affected, subsidy source, nature of subsidy, factors external to tax or subsidy characteristics and conflicting environmental objectives. We suggest research avenues for each aspect, to enhance literature on the influence of tax policies on promoting CPEB.Practical implicationsBeyond general tax-policy considerations, we provide policymakers with recommendations for tax policies designed to promote CPEB.Originality/valueWe examine the distinctive effects of taxes and subsidies on CPEB adoption within diverse industries ((re)manufacturing, agriculture, shipping, automobile, freight transport and power generation). We compare specific effects across industries, and advocate detailed exploration of recurrent elements identified, emphasizing their potential significance in designing taxes and subsidies that promote CPEB.

Tasas municipales aspectos controvertidos en la jurisprudencia de la Corte Suprema de Justicia de la Nación

One of the main challenges of federal systems of government is the determination of the scopeand limits of municipal tax power. This is showed through the controversies that exist in the case of municipal fees regarding the individualisation of state activity and the disconnection between the material aspect of the taxable event and the elements of quantification.

Do Environmental Tax and Energy Matter for Environmental Degradation in the UK? Evidence from Novel Fourier-Based Estimators

Currently, the UK has ambitious plans to reach net zero by 2050, despite other countries such as Russia and India targeting 2060 and 2070, respectively. Assuming that the UK emissions unceasingly decline at a given rate annually towards achieving net zero by 2050, its economy would need to ensure a reduction of 105 MtCO2 per year of its emissions from the current 2021 levels. Given that global greenhouse gas emissions have not peaked and continue to rise, the UK seeks to implement costly and aggressive emission reduction policies towards fulfilling commitments under the 2021 Glasgow Climate Pact. This paper investigates the effect of environmental taxes on environmental degradation in the UK between 2000Q1 and 2019Q4 using novel Fourier approaches. Using the novel Fourier ARDL estimator, the long-run equilibrium estimates indicate that gross domestic product and environmental tax cause a fall in carbon emissions. However, in trade and primary energy use, a unit change caused rising carbon emissions in the UK. Especially, the results indicate that environmental taxes have a negative effect on environmental degradation in the UK, and ecological tax policy could be considered as an effective channel to attain environmental sustainability. The outcome provides the following policy insights: (i) The government of the UK should support international environmental tax coordination mechanisms, especially on carbon pricing, to avoid relocation of carbon-intensive investments. (ii) The UK government must note that imposing more taxes to encourage emissions reductions could bring complexity to the tax system and unnecessarily bring costly ways to deal with climate change. Higher domestic electricity prices could disproportionately hit low-income households and create distributional cost concerns, which require benefit payouts or compensation schemes. (iii) Switching to electric vehicles simultaneously requires investments in charging infrastructure and battery technologies. To avoid this chicken-and-egg problem, the government of the UK could play a coordinating role, including deploying targeted subsidies, regulations, direct government involvement, or setting higher carbon prices in special cases.

The Facts, Causes and Effects of Carbon Tax

Abstract: The significance of climate change is growing, prompting individuals to actively reduce greenhouse gas pollution, promote the use of renewable energy sources, and advocate for sustainable development. Carbon taxes have become an important policy tool for attaining sustainable development. The purpose of this article is to analyze the emergence of carbon taxes. The research objective is to analyze the feasibility and the efficacy of imposing a carbon tax. The research highlighting the importance of carbon taxes in effectively eliminating greenhouse gas pollutions by analyzing countries that are already implementing them, designing income neutral carbon taxes to balance environmental benefits and economic growth, and listing options for various subsidies after taxes. The study is significant because it provides a thorough assessment of the effects of carbon taxes and suggests feasible policy suggestions. The government should consider the economic situation and people's income when designing the level of carbon tax and use more tax revenue to invest in new energy to achieve long-term low carbon. Wind and solar energy will be the main energy sources in the future. Under appropriate policies, carbon tax can achieve low-carbon and maintain GDP.

Rural energy poverty alleviation in OECD nations: An integrated analysis of renewable energy, green taxation, and the United Nations agenda 2030

Energy poverty in the Organisation for Economic Co-operation and Development (OECD) countries is a complex issue that needs careful and targeted solutions. Tens of millions of households in OECD countries struggle to pay for enough electricity and heating to meet their basic needs. Thus, it is essential to make a detailed assessment of rural energy poverty with an integrated approach. In so doing, we first measure rural energy poverty composite index across 38 OECD countries and their 5 major partners from 2000 to 2021. We then explored the linear effect of renewable energy technologies on energy poverty alleviation. Moreover, the mediating effect of green taxes on rural energy poverty through renewable energy technologies was analysed. Finally, the fuzzy regression discontinuity (FRD) method is employed to address the endogeneity issue associated with the assignment of the 2030 United Nations (UN) Agenda and to identify treatment effects. The results show that rural energy poverty improves over time. However, significant spatiotemporal disparities in alleviation efforts are found across countries. The results of Method of Moment Quantile Regression (MMQR) approach reveal that renewable energy technologies can accelerate rural energy poverty mitigation in the sample countries. We find that green taxation is an important mediating channel through which the adoption of renewable energy technologies alleviates rural energy poverty. The results of the Fuzzy-RD show that the 2030 UN agenda was effective in increasing the likelihood of rural energy poverty mitigation. The results remain consistent after a battery of robustness tests. This study offers valuable insights that can aid policymakers in formulating robust public policies.