Effective Tax Research Articles

The Effect of Hotel Tax Contribution and Hotel Tax Effectiveness on Regional Original Income in Medan City

This study aims to determine the significant effect of Hotel Tax Contribution and Hotel Tax Effectiveness on Regional Original Income in Medan City. From analysis, results of regression analysis are obtained which give the equation Regional Original Income = 23.160 - 0.730 Hotel Tax Contribution + 0.824 Hotel Tax Effectiveness + e. Results of the research analysis show that the Hotel Tax Contribution does not have a significant effect on Regional Original Income partially, namely tcount < ttable, namely -10,621 < 2.00172 and a significance value of 0.000 <0.05. Results of the research analysis show Hotel Tax Effectiveness has significant effect on Regional Original Income partially, namely tcount > ttable, namely 9.744 > 2.00172 and a significance value of 0.000 <0.05. Simultaneous Regional Original Income is Fcount > Ftable, namely 58.020 > 3.16 and the significance value is 0.000 <0.05. Results of this study are supported by the value of R Square = 0.671 or 67.1% which means that 67.1% of the Regional Original Income variable can be explained by the Hotel Tax Contribution and Hotel Tax Effectiveness variables, while the remaining 32.9% is explained by the influence of other factors or variables outside the model such as Tax Efficiency.

Analysis Of The Impact Of Carbon Tax And Green Property Tax On Jakarta's Local Revenue

Environmental issues are serious global challenges that must be addressed immediately. These issues require swift and appropriate action, including policies to support the transition to a greener economy. Carbon tax and green property tax are two fiscal instruments that the government can use to encourage environmentally friendly behavior and investment. This study aims to determine the effect of carbon tax and green property tax implementation on DKI Jakarta's regional income in an effort to implement the Green Economy in DKI Jakarta. The method used is descriptive qualitative with data collection techniques through literature studies. Data is sourced from the internet, including BPS, DKI Jakarta government website, and journals. The results showed that DKI Jakarta's regional income from carbon emission tax in 2023 reached Rp 837,210,000 with total gas emissions of 27,970 kiloton. The realization of green buildings in DKI Jakarta in 2023 exceeded the target, reaching 3.99 percent of the target of 2.5 percent, exceeding the target by 1.49 percent. Green property tax in the form of PBB deductions for green buildings is projected not to increase local revenue, but to reduce local revenue from taxes. However, this decrease in revenue is not significant, as the increase in green buildings will attract investors with a potential US$30 billion green investment by 2030. This can be realized if buildings and companies in DKI Jakarta are green building certified. Reduced local revenue will be worth it if accompanied by reduced emissions from increased green buildings.

Assessing the role of tax‐benefit policies during the COVID‐19 pandemic: Evidence from the Andean region

AbstractThis paper aims to assess the role of tax‐benefit policies in mitigating the effects of COVID‐19 on the distribution of household disposable income in Colombia, Ecuador, and Peru. We exploit data from phone surveys collected during the pandemic combined with tax‐benefit microsimulation techniques to nowcast the distribution of household disposable income. Our results show a sharp drop in household disposable income and a dramatic increase in poverty and inequality during the second quarter of 2020. By the end of 2020, the economy recovers but poverty and inequality remain above the pre‐pandemic levels. COVID‐related policies cushion the effect of the crisis at the bottom of the distribution, and their effect on poverty and inequality largely depends on the generosity of the benefits implemented. By contrast, automatic stabilizers mitigate the impact of the income shock at the top of the distribution due to the effect of social insurance contributions and personal income tax, whereas social assistance programs in place before the pandemic fail to act as automatic stabilizers due to their design as proxy means‐tested benefits. We validate our nowcasting estimates with actual survey data from the end of 2020 and show that our results match closely poverty and inequality indicators in all three countries.

An Assessment of the Effectiveness and Scale of Tax Expenditures to Support Investments and Priority Sectors in G20 Countries

An Assessment of the Effectiveness and Scale of Tax Expenditures to Support Investments and Priority Sectors in G20 Countries

Slovakia: Private foundations and trust-like institutes in Slovakia

Abstract Slovak private law significantly lags behind modern European trends. Family foundations and trusts or trust-like institutions are unknown to Slovak law. None of the recently proposed reforms has yet remedied this inappropriate state. The intergenerational transfer of family property remains very complicated. The use of foreign trust structures is also restricted by Slovak private international law and negative tax consequences. This article provides an overview of the development of Slovak legislation, its current state, efforts to change the regulation of foundations, and the practical ways of evading Slovak law by using foreign legal structures—private foundations and trusts.

Mineral resource management for a sustainable future: Unraveling the role of energy tax in driving green technologies and environmental quality

Effective mineral resource management balances economic growth with environmental sustainability and ensures long-term resource availability. The effectiveness of energy taxes in achieving carbon reduction has been a subject of considerable debate in sustainable development. Environmental taxation (ERT) is expected to promote decreasing carbon emissions by incentivizing the development of green technical advancements, which are crucial for achieving environmental sustainability. This research expands the current discourse on sustainable theory, specifically examining the influence of green energy, energy taxes, and socioeconomic factors on Chile's greenhouse gas (GHG) emissions. This analysis is based on quarterly data from 1994 to 2021. The nonlinearity test findings were supported using nonlinear approaches, such as quantile-on-quantile regression (QQR), nonparametric quantile causality analysis, and time-varying nonparametric causality evaluation. The QQR study findings indicate that the combination of green technology, green energy, energy taxes, and socioeconomic factors leads to decreased greenhouse gas (GHG) emissions in Chile, as shown across most quantiles. Furthermore, the dynamic nonparametric causality analysis results revealed substantial causative connections between green technology, green energy, energy taxes, and socioeconomic situations at different time intervals and levels of measurement. These findings serve as the basis for initiating policies.

Heterogeneous effects of carbon tax, subsidy and foreign carbon emissions on low- and high-carbon firms

Climate change engendered by carbon emissions has become a major threat to human life and the world economy. Many of early studies corroborate that carbon tax and subsidy are effective policy tools to alleviate climate change. Most of them, however, use closed-economy models with a single firm to analyze the effects of these two policies. This paper explores the effects of carbon tax, subsidy and foreign carbon emissions on economic activities in an open macroeconomic model that features low- and high-carbon firms. The main findings suggest that carbon tax, subsidy and foreign carbon emissions all deliver heterogeneous outcomes by largely affecting high-carbon firms. The shortage of national income due to weak economic activities leads the economy to issue more international bonds. The takeaway from all the analyses is that government should introduce various carbon taxes that are geared towards target firms with different carbon emissions and adopt optimal means to manage national debt.

On the impacts of higher tobacco taxes in Argentina: a computable general equilibrium approach

ObjectivesWe analyse the employment effects of increasing tobacco taxation in Argentina by building a computable general equilibrium (CGE) model.MethodsIn line with recent changes in tobacco taxation in the country, the...

The employment effects of corporate income tax and the bargaining power of labor unions

This study analyzes how the relationship between corporate income tax and employment varies according to the bargaining power of labor unions. To this end, we use a dynamic general equilibrium model to examine corporate income tax and the bargaining power of labor unions based on a span-of-control model. Previous studies on the relationship between corporate income tax and employment are inconclusive and do not examine the role of the bargaining power of labor unions in this relationship. Calibrated results obtained using data from Korea show that a reduction in only the corporate income tax rate slightly decreases total employment, but a reduction in the corporate income tax rate accompanied by a decline in the bargaining power of labor unions significantly increases total employment.

Domestic Competition, Trade Openness and Entrepreneurial Culture: Canonical Correlation Analysis

Abstract The paper analyses canonical correlations between domestic competition, trade openness and entrepreneurial culture. The research covered 141 countries ranked by World Competitiveness Index in 2019. Canonical correlation analysis is applied to find relationship between two canonical variables. The first canonical variable includes sub-indexes from Domestic competition and Trade openness pillars. The second variable contains sub-indexes from Entrepreneurial culture pillar. The results of the analysis showed there is a strong, positive, statistically significant canonical correlation between these canonical variables with a Pearson coefficient of 0.86. The linear regression analysis is also applied. The regression analysis shows that the variable Distortive effects of taxes and subsidies on competition is the most important for all dependent variables. The extent of market dominance, Competition in services and Border clearance efficiency are important, but not as much as taxes and subsidies. It confirms that regulation of domestic competition and trade openness are supreme for entrepreneurial culture.

Analysis of the Effectiveness of Tax Incentives on Energy Sector Investments

Analysis of the Effectiveness of Tax Incentives on Energy Sector Investments

ANALISIS PAJAK RESTORAN TERHADAP PENINGKATAN PENDAPATAN ASLI DAERAH KOTA PADANG PANJANG

This research aims to analyze the effectiveness of restaurant taxes and the contribution of restaurant taxes to increasing local revenue in the city of Padang Panjang. In this research using quantitative and qualitative analysismethods. The results of the research conducted suggest that the effectiveness of restaurant tax collection for 2017-2021 is quite effective, with an average effectiveness rate of 89.05%. The highest percentage of effectiveness wasin 2021 at 98.13% and the lowest in 2018 was 81.21%. Meanwhile, the contribution of restaurant tax in 2017-2021was very less, with an average contribution of 1.30%, the highest contribution in 2018 is 1.53% and the lowest in2020 was 1.18%.

PENGARUH PAJAK PENGHASILAN, CASH HOLDING DAN RISIKO KEUANGAN TERHADAP INCOME SMOOTHING

This study tries to analyze the effect of income tax, cash holding and financial risk on income smoothing. This study uses secondary data. This type of research is a quantitative approach research with a descriptive analysis method. Samples were taken using a purposive sampling technique. The sample consists of 66 data from 11 companies in the property and real estate sector listed on the Indonesia Stock Exchange in 2017-2022. The data analysis technique used in descriptive statistical technique and panel data regression using Eviews 12. Based on the results of this study, it shows that Income tax, cash holding and financial risk have a simultaneous effect on income smoothing. Partially, cash holding has an effect on income smoothing, while income tax and financial risk have no effect on income smoothing.

Analysing the Effectiveness of Hotel, Restaurant, and Advertising Taxes Revenue in Enhancing the Regional Original Revenue of DKI Jakarta Province

This study analysis the effectiveness of Hotel Tax, Restaurant Tax, and Advertising Tax in enhancing the Regional Original Revenue (PAD) of DKI Jakarta Province. The study examines local tax revenues from the fiscal years 2020 to 2022, focusing on the constant growth of Restaurant and Advertising Taxes. It looks at how the regional government of DKI Jakarta has explored the potential of these local taxes through policies and regulations, resulting in a significant increase in local tax revenue. The study underlines that the annual increase in local tax revenue from Restaurant Tax, Hotel Tax, and Advertising Tax should not be the sole measure of success in harnessing their potential. The effectiveness of these local taxes serves as a gauge of how far the achievement target will be reached, with higher percentages indicating higher effectiveness. This study found that Hotel Tax, Restaurant Tax, and Advertising Tax have been highly effective in meeting the revenue targets set by the regional government, with effectiveness rates ranging from 99.1% to 108.7%. However, the contribution of these local taxes to the regional original revenue is categorized as very low, indicating variations in contribution amounts based on differences in tax rates. Despite the low contribution, the effectiveness of tax revenue in meeting targets remains high. To increase the regional original revenue, the focus should be on expanding the scope of local tax objects rather than setting excessively high targets, as optimizing the potential of local taxes is crucial for enhancing the regional original revenue of DKI Jakarta Province.

Mandatory nutrition attributes labeling and consumer demand: a structural approach analysis of the US soft drink market

While soft drinks stand out as a major cause of obesity and overweight worldwide, the USA is the country most concerned with this problem. To reverse the situation, experts have agreed that labels and taxes represent promising policy tools. Focusing on the soda market, this paper investigates how consumer demand for nutrient contents responds to the US revised nutrition facts label policy implemented in 2020. Relying on retail scanner data, the study finds after estimation of a discrete choice logit demand model that the change in nutrition labels caused consumers to modify their purchasing behavior. However, they did not systematically switch from unhealthy beverages to healthy ones. The analysis finds evidence that the label revision policy was mostly impactful in decreasing consumers’ preference for soda with superhigh calories and high sugar content. Surprisingly, the joint effect of label and tax did not decrease the sampled consumers’ preference for unhealthy nutrient contents. They still preferred buying soft drinks superhigh in calorie content inside US cities with a tax on sugar-sweetened beverages (SSB), despite the revision of the facts label. Finally, the new nutrition label has improved the average surplus of consumers and total welfare. However, the gain is lower within the cities implementing the sugar tax.

Redistribution and human development: evidence from Europe

This study examines the relationship between human development and the redistributive effect of taxes and government transfers in 30 European over the period 1990-2021 by means of a fixed-effects panel model. Overall, the analysis suggests that increases in redistribution lead to an increase of development. The coefficient for a one-period lag is also found to be positive and significant, suggesting that the effects of redistributive policies show some persistence. When replicating the experiment for different European regions, the greatest impact of redistributive measures is found in Northern Europe, as opposed to Southern Europe, where the impact on development is not found to be significant.

Exploring minimal indirect digital economy taxation as a post-COVID-19 economic recovery strategy for African revenue mobilisation

The COVID-19 pandemic and its aftermath continue to devastate most areas of society and continue to reveal inherent structural vulnerabilities in the economies, social, and health systems in countries. In addition, the Russia-Ukraine conflict of 2022 and the geopolitics of its resolution continue to create shocks across the globe- evidenced by rising inflation, increased sovereign debt level, recession, and reduced public expenditure among others. While many sectors of the economy were crippled by the back-to-back global economic shocks of the Covid-19 pandemic and the Russia-Ukraine conflict through reduced economic activities resulting in a global recession and reduced tax revenues for public expenditure, the digital economy has surprisingly boomed and continues to grow in this period of uncertainty. This has been directly attributed to the 'lure of the alternative', caused by the social and economic lockdowns imposed by countries, which pushed many persons and companies to explore the next available option- online platforms to conduct business. Although the rise in the use of digital platforms for business activities is commendable, this development has some implications for traditional business frameworks which in turn affects revenue mobilisation for funding public infrastructure projects and services. This is because, in Africa, the digital economy is not as well-regulated as the traditional economy. This creates an avenue for tax evasion and avoidance, arising from the dynamic and complex nature of digital transactions. This challenge requires that urgent solutions be found for the effective taxation of the digital economy. There will be a need to review/reform economic and fiscal policies and laws to ensure a faster recovery from the economic effects of the COVID-19 pandemic. There would also be a need to create digital tax policies that are equitable for source and market jurisdictions and, lastly, there will be a need for cooperation in tax law and policies across Africa that capture the reality of the growth and ubiquitous presence of digital multinationals in Africa.

FISCAL POLICY ON ECOLOGICAL FOOTPRINT IN NIGERIA: AN EMPIRICAL INVESTIGATION

In recent times, the challenges of government policy formulation to achieve desired objectives and maintaining a sustainable environment without inhibiting human well-being is still an issue of debate among scholars in the literature. Many factors have been identified as culpable of environmental humiliation, but the government policy as a factor is more often than not ignored. However, the government formulates policies most especially fiscal policy that involve the collection of revenue through taxation and expenditure on infrastructural facilities, industrialization, mechanization, urbanization, etc to achieve sustained economic growth without recur to the effect of the policy on ecological footprint and its effects on human well-being in the society. Thus, this study uses the ARDL econometric approach on annual time series data extending from 1981 to 2022 to investigate the effect of fiscal policy on the ecological footprint in Nigeria. The variables used in the study include ecological footprint proxied by comprehensive measures of environmental degradation (dependent variable), government tax revenue and expenditure (independent variable), population, and technological changes proxied by industrial activities are the control variables. The study's findings indicate that fiscal policy variables are both positively and negatively related to ecological footprint and are statically significant. Specifically, government tax revenue reduces ecological footprint while government expenditure escalates the environmental degradation in Nigeria during the period under review and they are all significant statistically at 1% and 5% respectively. Considering these results, the research concludes that fiscal policy formulation has a noteworthy effect in determining changes in the ecological footprint in Nigeria. Given the effect of tax and government spending policy on infrastructure and industrialization, the government should formulate policies that are environmentally friendly and increase budgetary allocation to control and manage environmental challenges that inhabit the well-being of the citizens. By implication, the economic growth policy which invariably leads to ecological footprint challenges should be properly looked at to reduce ecological footprint in Nigeria.

PENGARUH PENERIMAAN PAJAK BUMI DAN BANGUNAN TERHADAP OPTIMALISASI PENCAPAIAN TARGET PENDAPATAN ASLI DAERAH KOTA BANDUNG TAHUN 2017-2021

This research aims to find out how much influence the Rural and Urban Land and Building Tax (PBB-P2) has on regional original income (PAD) in the City of Bandung. Based on target data and the realization of the effectiveness and contribution of regional taxes to Bandung City's original regional income, there is a decrease in the realization of achievements from year to year. This is influenced by less than optimal land and building tax collection in the urban and rural sectors. The data processing is based on the realization of land and building tax targets as well as regional original income data with an observation period from 2017 to 2021 and secondary data in the form of monthly data for 5 years. The results show that the average contribution of land and building tax to local revenue only produces a ratio of 16%. From the results of hypothesis testing, there is a significant influence between PBB-P2 and the Bandung City PAD

National Environmental Taxes and Industrial Waste in Countries across Europe

The use of economic instruments within environmental policy has become a challenging topic for policymakers, governments and scholars. Environmental taxes have emerged as a prevailing preference in developed countries to promote sustainability. Recently, a particular focus has been given to waste generation and disposal, shifting the attention from greenhouse gases to another important source of environmental pollution. This paper investigates the effect of national environmental taxes and policies on industrial waste. A fixed effects model is used for 34 countries across Europe from 2004 to 2022. The results suggest that environmental taxes and energy policies reduce industrial (hazardous and non-hazardous) waste. However, environmental tax reforms should take into consideration the deterioration in environmental quality, the increase in economic costs and undesirable social consequences.