Tax Rates Research Articles

Comparative analysis of the impact of cigarette taxation on consumption, revenue and mortality in Jordan

Background: Tobacco taxes are a powerful tool for reducing tobacco consumption and a reliable source of revenue for government. Aim: To investigate the potential efficacy of tobacco taxation strategies in Jordan in relation to their fiscal and healthrelated outcomes. Methods: Using Tobacconomics, we conducted a comparative analysis of several taxation scenarios: maintaining the status quo; increasing both specific excise and tiered taxes; increasing tiered tax rates alone; and raising specific excise taxes only. Results: We obtained the projected fiscal and health outcomes under the different tax policy scenarios: current scenario with no adjustments; 20% increase in specific excise taxes coupled with a 10% boost in tiered tax rates; raising tier tax by 20%; and raising specific excise by 20%. A 20% increase in excise taxes will decrease cigarette consumption, increase government revenues and reduce deaths among adults and adolescents. It can provide up to 87.5% reduction in adolescent deaths if coupled with a 10% boost in tiered tax rates. Conclusion: A consistent and aggressive approach to tobacco taxation can effectively decrease tobacco consumption and increase government revenue if Jordan's multi-tiered specific excise tax system is adjusted according to retail price.

The effects of management practices on effective tax rates: evidence from Ecuador

The effects of management practices on effective tax rates: evidence from Ecuador

Faktor - Faktor yang Mempengaruhi Kepatuhan Wajib Pajak UMKM dalam Melaksanakan Kewajiban Perpajakan: Studi Kasus pada Wajib Pajak UMKM di KPP Pratama Seberang Ulu

This study aims to examine the effect of tax knowledge, tax sanctions, service quality, tax rates and application of e-filing on taxpayer compliance of UMKMs at KPP Pratama Seberang Ulu. The independent variables in this study are tax knowledge, tax sanctions, service quality, tax rates and application of e-filing while the dependent variable is taxpayer compliance. There are 2 theories in this study, namely attribution and the theory of Planned Behavior. This study uses a quantitative method. The population in this study are UMKM actors registered at KPP Pratama Seberang Ulu. The sample was determined using purposive sampling. Data were collected by distributing questionnaires to 47 UMKMs registered at KPP Pratama Seberang Ulu and in accordance with the specified characteristics. Primary data collection techniques and data analysis using multiple linear regression analysis SPSS software version 25. The methods used in this study are Descriptive Analysis, Validity Test, Reliability Test, Classical Assumption Test, Multiple Linear Regression Analysis Test, F Test, R2 Determination Coefficient Test and t Test. The results of the study indicate that tax knowledge, tax sanctions and the application of e-filing have an effect on taxpayer compliance, while the quality of service and tax rates have no effect on the compliance of UMKM taxpayers at the Seberang Ulu Pratama Tax Office..

Mixed Marginal Rates of Substitution for Analyzing Banking Efficiency Using a Linear Programming Approach

This paper introduces a Mixed Marginal Rates of Substitution (MMRS) approach for analyzing banking efficiency within a linear programming framework. For this purpose, a linear programming model is proposed that efficiently calculates Marginal Rates, revealing how partial input changes affect multiple outputs simultaneously. Applying this methodology to data from the Taiwanese banking system spanning 2010 to 2020 reveals diverse efficiency patterns across financial institutions. The analysis demonstrates that while increased financial inputs generally improve outputs, individual banks exhibit varying sensitivity to these changes. Some institutions were resilient to input fluctuations, while others showed marked sensitivity, particularly in loans and investments. As a result, the proposed MMRS framework provides a robust tool for analyzing indicator relationships within efficient units, offering valuable insights for tailored management strategies and policy formulation in the banking sector. The findings emphasize the importance of institution-specific approaches to enhancing banking efficiency and managing risk effectively, contributing to a more nuanced understanding of economic outcomes in the financial industry. Additionally, symmetry concepts in input–output relationships are suggested as a potential area for future research, offering a possible framework for identifying balanced efficiency patterns among banks.

Article: How Did Anti-tax Avoidance Measures Affect ETRs and Profit Shifting?

This study examines the impact of anti-tax avoidance measures on the effective tax rates (ETR) and profit shifting activities of Multinational enterprises (MNEs) across several key countries. It employs a two-pronged approach to evaluate the effectiveness of the base erosion and profit shifting (BEPS) Actions 3 and 13 in particular. First, the study analyses the generally accepted accounting principles (GAAP) ETRs of large listed firms. Second, the data from tax reconciliation is utilized to investigate ETR items. The findings show a significant increase in ETRs since 2017 which suggests a reduction in profit shifting due to implementing CbCR and controlled foreign company (CFC) rules. However, the effectiveness of these measures in terms of profit shifting varies across countries. France and Germany have demonstrated substantial improvements while Sweden has exhibited positive but volatile results. In contrast, Switzerland and the United Kingdom have presented outcomes that are more complex and nuanced. The study highlights the necessity for continuous fiscal vigilance and implementing adaptive tax policies in order to effectively combat tax avoidance.

Optimum carbon tax rate for emission targets of electricity generation system by life cycle techno-economic-environmental optimization model

Reduction of greenhouse gas emissions from the electricity sector is of special interest for decarbonization of energy systems. Optimum carbon tax as a powerful policy tool is here studied by integrated techno-economic-environmental life cycle analysis in a unit commitment problem. The present model is formulated as a bi-level optimization problem to reach the optimum carbon tax rates for different emission targets. The total life cycle CO2 emissions are estimated to be 20333.90 tons/hr in a real case study of Iran's electricity sector for the peak demand hour. The carbon tax rate for a 2% and a 3% emissions reduction is equal to 15.87 and 24.65 $/ton, respectively. In the business-as-usual scenario, higher carbon taxes will be required each year to meet the same emission target. However, developing the electricity sector with cleaner technologies and strategic plans may decrease the carbon tax rate. The extent of this reduction depends on the type of development program implemented in the green revolution scenario. Therefore, policy makers play a direct role in ensuring the sustainable development of the electricity sector. The present model provides a robust framework to analyze the real carbon tax rates for the whole life cycle of electricity generation dispatch.

Influence of phosphorous fertilizer on mineral nutrition and yield attributes of wheat: Acquisition with PSTOL1 gene for arid environment

To boost agricultural yields, understanding mineral nutrition’s reliance on fertilizers is crucial, underscoring the need to evaluate nutrient-use efficiency for optimal fertilization. In this regard, a field study was conducted to elaborate the role of phosphorus fertilizer in enhancing growth, yield and marginal rate of return in four wheat varieties; two Zn-biofortified (Zincol-2016 and Akbar-2019) and two standard types (Anaj-2017 and FSD-2008). The study revealed that application of phosphorus significantly enhanced the uptake of nitrogen (N), phosphorous (P) and potassium (K) contents in straw (13 %, 59 % and 79 %) and grains (63 %, 92 % and 28 %) respectively. Similarly, the contents of Zinc (Zn) and iron (Fe) were reduced in straw (23 % and 19 %) and grains (19 % and 18 %) respectively after application of 80 and 120 kg P2O5, however at 40 kg P2O5 the contents of Zn and Fe were slightly enhanced. The grain yield (21 %) and harvest index (11 %) was maximum at 80 kg P2O5 as compared to 40 and 120 kg P2O5. The Marginal rate of return over investment (MRR) in P2O5 was maximum (241 %) in Akbar-2019 when P-fertilizer was applied at the rate of 80 kg P2O5 per ha−1. Regression analysis showed a positive correlation between grain yield and its determinants. Biofortified wheat varieties responded better to 80 kg P2O5, outperforming standard varieties in yield. Additionally, our findings demonstrate a significant upregulation of PSTOL1 gene expression at 80 kg P2O5 level. Concludingly the application of P-fertilizer at the rate of 80 kg P2O5 per ha−1 enhanced growth, yield and rate of return of testing wheat varieties especially the biofortified ones; Zincol-2016 and Akbar-2019.

The Influence of Corporate Social Responsibilty on Tax Avoidance

This research evaluates the disclosure of tax avoidance and corporate social responsibility in companies listed on the stock exchange and based on the age of the company. By using the effective tax rate indicator for tax avoidance and the Global Reporting Initiative for corporate social responsibility. This research was conducted on manufacturing companies in the basic materials sector listed on the IDX from 2018 to 2023. The sample selection in this study used the purposive sampling method and obtained 21 sample companies. The results of this study indicate that companies listed on the special and main monitoring boards tend to have higher corporate social responsibility disclosures and are more focused on social responsibility initiatives. This suggests that companies listed on the main and special monitoring boards are more focused on social responsibility, including environmental sustainability, human rights, and contributions to society. This research underscores the importance of the role of corporate social responsibility in creating long-term value and the competitiveness of the company. This research also shows that companies aged 5-10 years tend to reach the peak of disclosure in various aspects of corporate social responsibility. These results emphasize the importance of corporate social responsibility in creating a good reputation and supporting sustainable growth, especially in the context of companies of different ages.

Factors influencing tax compliance among e-commerce traders in Indonesia

ABSTRACT Taxation in e-commerce is crucial for countries, businesses, and consumers. Combatting tax avoidance enhances compliance and fairness. Understanding e-commerce attitudes on tax morality is vital to curb evasion. This study aims to examine the relationship between the perception of tax rate, referral group, tax knowledge, tax regulation, and perception of equity and fairness on compliance of e-commerce trade in Indonesia. Data from 433 taxpayers reveal these factors significantly impact compliance. Insights inform effective tax policy design for e-commerce dynamics, aiding governments in responsive strategies.

A new stage of personal income taxation in Russia

Subject. The article deals the latest changes in the Russian legislation regarding the taxation of personal income that is planned to be legally effective as of January 1, 2025. Objectives. The article aims to examine historical, theoretical, and practical foundations of personal income taxation to determine the feasibility of introducing a progressive scale. Methods. The study draws on methods of comparison, observation, and scientific abstraction. Results. We established that the indicators of budget revenues from the payment of personal income tax tended to increase both at progressive and flat tax rate. The performance of the payment under study is influenced by such factors as employment, income received by an individual, manufacturing sector expansion, and creation of new jobs. The findings can be applied in the work of executive authorities, budgetary, and other organizations, including the educational process of academic institutions. Conclusions. The transition to progressive scale of taxation can lead to undesirable consequences, since there is a high risk of hiding citizens' incomes. The order of differentiation of tax rates requires economic thinking. A system should be created to eliminate social inequality by taking into account the income level of individuals.

Fiscal and macroprudential policies in a monetary union

AbstractIn the European Monetary Union (EMU), monetary policy is determined by the European Central Bank (ECB). This arrangement can give rise to certain national economic imbalances that may potentially be addressed through national policies. Traditionally, fiscal policy has been the primary tool to correct these imbalances. However, following the global financial crisis (GFC), a new policy tool has emerged: national macroprudential policies, which aim to mitigate financial risks. This situation raises an intriguing research question: How do macroprudential and fiscal policies interact? Through their influence on real interest rates and economic activity, discretionary macroprudential policies can impact the trajectory of public debt and may necessitate fiscal adjustments, such as tax rate increases, to stabilize the public debt-to-GDP ratio. In a monetary union, a domestic macroprudential shock generates significant cross-border financial effects and also influences the fiscal stance of foreign countries. Furthermore, discretionary government spending policies have an impact on housing prices and households debt. Therefore, the responsiveness of macroprudential policy to changes in housing prices affects the fiscal multiplier.

UK Budget – Did Labour Deliver on Their Promises?

During last summer’s UK elections, the Labour party manifesto included a pledge to address a huge gap in the country’s finances by raising taxes on the wealthy, while sparing “working people” from tax increases. Last month, Chancellor Rachel Reeves laid out Labour’s autumn budget, announcing abolishment of the non-dom rules, as well as increases in capital gains tax rates and employers’ contributions to the National Insurance, among other things. In this Talking Points, Claire Shelemay reviews the most significant changes in the Autumn Budget and examines whether Labour did, in fact, keep their promises.

Environmental taxes promote the synergy between pollution and carbon reduction: Provincial evidence from China

Since its implementation in 2018, China's environmental tax has become a crucial mechanism in the nation's strategy for reducing environmental pollution. However, its synergistic effect between pollution and carbon reduction has not been adequately focused on and evaluated. This study employs the difference-in-differences (DID) model to analyze the impact of the environmental tax policy on the emissions of pollutant and CO2 as well as the synergistic effect between them. The baseline results reveal that the implementation of environmental taxes significantly reduces the emissions of SO2 and CO2 and enhances the level of synergistic effects. This finding passed a series of robustness tests. Additional analysis reveals that the environmental tax promotes reductions in SO2 and CO2 emissions through adjustments in industrial and energy consumption structures. Furthermore, mechanism analysis from an econometric perspective provides theoretical support for the synergistic effect of pollution reduction and carbon mitigation. In the process of achieving CO2 reduction, SO2 plays a crucial mediating role. The heterogeneity effect suggests that in non-coastal areas and regions with larger governmental scales, the environmental tax exhibits significant emission reduction effects. It is advisable to strengthen the legal safeguard of environmental tax, dynamically adjust tax rates, and timely expand the tax scope to improve the environmental tax system and enhance its policy effects. This study provides empirical evidence and policy insights to optimize the environmental tax, offering valuable references for environmental tax reforms in developing countries.

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...

The Impact of Applying International Accounting Standards on the Tax Base: An Applied Study of a Sample Of Banks Listed on the Iraq Stock Exchange

Objectives: The study aimed to examine how international accounting standards affect the taxable base of Iraqi banks listed on the Iraq Stock Exchange. Methods: A stratified purposeful sample of 33 participants was selected, including top management from financial departments of the National Bank of Iraq, Commercial Bank of Iraq, and Bank of Baghdad, as well as accountants and auditors. Data was collected using a questionnaire and analyzed through SPSS software. Results: The findings indicated that accounting information provides essential financial and accounting data necessary for calculating income, expenditure, and profits for tax purposes. This data enables government agencies to estimate the tax base more accurately. Furthermore, financial transparency and reporting include disclosing changes in tax rates compared to the previous accounting period. Specific international accounting standards, including Standards 9, 12, 15, 16, 21, and 36, were found to significantly influence the taxable base of the banks. Conclusion: The study concluded that banks should develop deferred tax asset and liability management strategies to reduce deferred tax impacts on financial statements and improve performance. Additionally, banks should periodically review and adjust their accounting and tax practices to comply with local legislation and international accounting standards, particularly in the areas of financial instruments, income tax, revenue recognition, fixed assets, and exchange rate changes.

Carbon reductions through optimized solar heat gain glass properties considering future climate and grid emissions: case study of Chicago’s residential buildings

Existing resources leave confusion over the benefits of high versus low Solar Heat Gain Coefficient (SHGC) windows for energy performance in residential buildings retrofits in cold climates. Additionally, few studies have considered the impact of expected future climate conditions and time-variable grid emission rates on energy-related metrics. Utilizing the ResStock, residential building stock models from the National Renewable Energy Laboratory (NREL), this study investigates retrofits increasing the SHGC of windows in Chicago, a cold US city. The results indicate that increasing window SHGC increases summer cooling needs; however, in most cases, this effect is more than offset by reduced winter heating needs. This balance is particularly beneficial considering the state’s expected long-run marginal carbon emission rates. The study also examines the combined effects of high SHGC with improved window insulation values, demonstrating that such strategic window retrofits not only enhance overall building energy performance but also contribute to greater emission reductions. On average, the current Chicago residences (n = 4,826) save 4.6 % on heating and cooling carbon emissions by increasing the SHGC of the windows. If we assume that those homes are upgraded with heat pumps (electrification), a popular retrofit that reduces heating-related carbon emissions in particular, the increased window SHGC saves 2.5 % of long-run marginal carbon emissions. These results provide new insight into the carbon benefits of higher SHGC replacement windows in a cold climate. The benefits are significant, even considering future trends of a warming climate, higher demand grid emissions, and building electrification.

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.

Do markets react to dividend announcements and sharia compliance? Evidence from organisation of Islamic cooperation countries

Purpose This study aims to investigate the market reaction to dividend announcements and sharia compliance based on the Islamic stock indexes of Indonesia, Malaysia and Pakistan by scrutinising investors’ interpretations, behaviour (traditional, rational, religious or ethical) and preferences. Design/methodology/approach Event study methodology (ESM) was used to analyse 31 days around the event date. The research period spanned 2011–2018, during which 282 observed dividend announcements were tested using a t-test, and there were 4,960 cases of sharia compliance in the data panel. Findings Indonesian investors react to earnings surprises as bad news while bypassing dividend announcements, thus classifying their behaviour as rational. Meanwhile, investors in Malaysia and Pakistan respond to dividend announcements as bad news while bypassing earnings surprises, thus classifying their behaviour as traditional. Surprisingly, sharia compliance does not affect abnormal returns. These results imply that investors prefer a profit motive rather than sharia compliance. Practical implications To perpetrate positive reactions, companies need to increase earnings (Indonesia), nominal dividends (Malaysia) and delay dividend announcements (Pakistan). Also, tax regulators need to evaluate dividend tax and capital gains tax. Social implications Investors cannot solely rely on Islamic stock lists, while regulators and firms must be transparent and accountable regarding sharia compliance ratio. Originality/value There is a dearth of research on market reaction in Islamic stock indexes. This study adheres to critical assumptions of ESM: controlling the confounding effects and ensuring market efficiency. These assumptions lead to the proposal of mandatory and advisory sharia compliance, evaluation of ratios using a staple scale and examination of differences in dividend tax rates. An extended tax preference theory is also proposed to contribute to the body of knowledge.

Raising the stakes: How progressive tax rates affect risk‐taking by pass‐through businesses

AbstractWe examine how progressive individual tax rates affect risk‐taking by pass‐through businesses (PTBs). PTBs generate over 60% of US business income and make up roughly 95% of business tax returns, yet there is limited research on how progressive tax rates affect project selection. We study PTBs using the setting of thoroughbred racing and examine how progressive tax rates affect the decision to enter a risky stakes race or a less risky allowance race. This setting provides a unique opportunity to observe the choice between two mutually exclusive projects that differ only in expected payoffs and risk. Using a difference‐in‐differences design surrounding the reduction in progressivity under the Tax Cuts and Jobs Act, we find that investment in stakes races increases in the United States relative to Canada. We find further evidence of a negative relation between progressive tax rates and risk‐taking using a plausibly exogenous shock in progressivity in California and exploiting cross‐sectional variation in the progressivity of state tax rates. Overall, our findings should be of interest to policy‐makers considering changes to progressive rates. Results indicate that increases to progressive tax rates may discourage risk‐taking by the small businesses that drive economic growth.

Data Breach Notification Laws and Corporate Tax Planning

ABSTRACTThis study explores the impact of data breaches on corporate tax planning in the United States. The results reveal that when a firm's headquarter is located in a state that has adopted a data breach notification (DBN) law, there is a significant 3.8% decrease in the long‐term effective tax rate. This reduction translates to annual tax savings of approximately $8.13 million. Furthermore, tax sheltering is found to decrease by 19.17% compared to the sample average. These effects are particularly pronounced in financially constrained firms and those operating in high‐tech industries. The findings suggest that after the introduction of mandatory data breach disclosure requirements, firms are less inclined to engage in aggressive tax avoidance practices, which could otherwise lead to increased litigation costs. Instead, they prioritize efficient tax planning strategies to improve after‐tax cash flows.