Government Revenue Research Articles

How Prepared Are US States for a Recession: An Update

Rainy day funds are a common tool that most US states use to help mitigate the fiscal stress caused by economic slowdowns that reduce state government revenue. Except for a very brief (but very severe) recession in 2020 caused by the pandemic, most states have generally experienced an economic expansion since the end of the Great Recession in 2009 giving them well over a decade to accumulate savings in a Rainy-Day Fund (RDF) to help weather an economic downturn. This paper examines how state RDF’s have changed over the past decade and how these changes have affected each state’s ability to weather an economic downturn.

Improving the Laboratory Investigation Price Revising Process at Sri Jayawardhanapura General Hospital

Sri Jayawardhanapura General Hospital (SJGH) is a non-profit public enterprise that offers reasonable services. The hospital relies on government grants and revenue generated by patient care services for funding. One of its crucial departments is a laboratory, which serves as a vital support service and the main profit center. However, the frequent rise of consumable prices during economic crises significantly impacts the variable costs of laboratory tests, resulting in financial losses.Calculating the cost incurred by laboratory investigations is essential for implementing a price revision strategy to address this issue. Given the absence of a recognized method for calculating investigation costs, adopting the World Health Organization's Laboratory Test Costing Tool (LTCT), a user-friendly Microsoft Excel-based tool, is recommended. This tool is specifically designed to assist in calculating laboratory test costs, ensuring a more accurate understanding of expenses incurred.Additionally, establishing key indicators to signal the need for price revision and assigning responsibility to initiate the price revision process when these indicators are triggered will streamline the process and improve its responsiveness to financial challenges. By employing such a system, SJGJ can better manage its laboratory costs, maintain service quality, and ensure sustainable operations even during economic hardships.

The Dynamic Post COVID-19 World and Inflation: is Nigeria’s Monetary Policy Effective?

Nigeria had relative success in tackling the Covid-19 and its attendant economic consequences. A complementary mix of superior monetary and fiscal policy interventions saw support for the real sector, as well as growth and strengthening for the financial sector. The monetary authorities used several mediums to inject funds into the economy, while the financial sector was the channel through which huge sums were injected into the economy. These interventions however came with their fair share of woes, as they were carried out against the backdrop of rising inflation and unemployment levels. The unique nature of the Nigerian economy saw policy interventions targeted at stabilizing the economy, yield less than satisfactory outcomes. Currently, Nigeria faces the lagged impact of monetary and fiscal Covid-19 interventions in persistent high double digit inflation rates. The fall in global oil supply and world food prices necessitated by the Ukraine-Russian war have not helped the situation. These global events have had far reaching impacts on the Nigeria economy via the shortfall in supply of Premium Motor Spirit (PMS) products, food shortages, and resultant exchange rate pressures. The domestic economy has not been without its fair share of events that have resulted in a spike in inflation rates. The persistent security issues in the north and other parts of Nigeria, did not serve as an obstacle to people mobilization and the high spending during the 2023 elections. Declining government revenues, the rising public debt and its servicing, while inimical in their own stead, have catalyzed the pressure on the exchange rate. Against these backdrop, the monetary authority’s decision to institute a currency redesign and cashless policy has left people confused as to what actually is their short- and long-term goals/objectives, the effectiveness of policy to achieve said goals, as well as their readiness to tailor policy to changing global events/trends. The study will seek to examine monetary authority responses to curb inflation and achieve economic stability.

Tourism Development Impact on Economic Growth and Poverty Alleviation in West Java

Poverty alleviation is on the agenda of regional development in West Java. One of the priority sectors is tourism development, which supports inclusive economic growth and is expected to address poverty. Through various unit analyses, the study analyzed how tourism development in West Java impacts economic growth and poverty alleviation. These included indicators such as the number of tourist visits, hotel room occupancy rate, the number of hotels and restaurants, average length of stay, and the tourism sector's contribution to Original Local Government Revenue (PAD). Economic growth was assessed using indicators such as Gross Regional Domestic Product (GRDP), unemployment rate, Gini Index, and regional investment value. In contrast, the poverty variable used the percentage and number of people living in poverty, poverty line statistics, Poverty Depth Index, and Poverty Severity Index. Inferential statistical analysis, specifically Partial Least Square (PLS), was conducted using a quantitative approach and data from BPS - Statistics of West Java. Hypotheses were formulated based on the literature review, asserting that tourism development significantly and positively impacted economic growth and poverty alleviation in West Java. Results showed that tourism development significantly boosted economic performance, directly influencing economic growth. Additionally, high economic growth correlated with reduced poverty rates, highlighting the importance of inclusive growth for alleviation. Key indicators played crucial roles in poverty alleviation, including the number of hotels and restaurants, the tourism sector's contribution to regional revenue, GRDP, and regional investment value. These findings provided valuable insights for policymakers and stakeholders to develop effective strategies for leveraging tourism potential to promote inclusive economic growth and alleviate poverty in West Java.

Assessing the Fiscal Burden of Overweight and Obesity in Japan through Application of a Public Economic Framework

Introduction: Obesity continues to represent a significant public health concern, with a broad impact from both a health and economic perspective. Objective: This analysis assesses the fiscal consequences of overweight and obesity (OAO) in Japan by capturing obesity-attributable lost tax revenue and increased government transfers using a government perspective. Methods: The fiscal burden of OAO was estimated using an age-specific prevalence model, which tracked the Japanese population across different body mass index (BMI) categories. The model was populated with fiscal data for Japan, including employment activity and government spending, to calculate tax revenue and transfer costs. A targeted literature review was conducted to identify data estimating the impact of OAO on employment, income, sick leave, retirement, and mortality. These modifiers were applied to Japanese epidemiological and fiscal projections to calculate government tax revenue and spending. The incremental impact of reducing OAO in the general population was subsequently calculated. Results were estimated based on the 2023 Japanese working-age population aged 18 to 70 years. Results: The total fiscal burden of OAO in Japan, defined as BMI of at least 25, is estimated at US $13.41 billion (¥1925 billion), representing 0.4% of Japan’s gross domestic product. This consists of a loss of $6.3 billion (¥901 billion) and $1.2 billion (¥179 billion) in direct and indirect tax revenue, respectively, due to lower employment and income combined with higher sick leave. Excess OAO-attributable healthcare costs were $5.4 billion (¥769 billion), while additional pension payment spending of $0.5 billion (¥77 billion) was estimated, due to higher levels of early retirement. Conclusions: While the health implications of OAO are well documented, this fiscal analysis demonstrates the significant economic burden of OAO both to the healthcare system and broader government accounts. Policies aimed at reducing population-level obesity have the potential to benefit government accounts through increasing employment and reducing public spending, which can offset the cost of implementing these policies.

Residential income tax compliance in Nepal: An empirical analysis

Tax compliance is the determining factor in tax report submission, enhancing tax awareness. A low level of tax compliance (TC) directly affects the government revenue and low inflow of information regarding taxpayers. This study uses descriptive and explanatory research approaches to identify determinants of residential rental income tax compliances (TC) among property owners in Kathmandu Metropolitan City, Nepal. A total of 1,129 structured questionnaires were distributed among the households of Kathmandu Valley for the cross-sectional and primary data, and only 500 (44.29 percent) useful responses were received from the respondents as the population was unknown. The response rate exceeds the estimated sample size of 384. The findings revealed a significant positive impact of tax rate on tax compliances (r = 0.329**, P<0.05). Fines and penalty (FP) and tax compliance (TC) found a positive and significant association depicting (r =.398**, P<0.05). Similarly, there was a positive and significant relationship (r = .612**, P<0.05) between attitudes and perception (AP) and tax compliance (TC). Moreover, a positive and significant association was found (r =.410**, P<0.05) between tax knowledge (TK) and tax compliance (TC). Furthermore, tax policy (TP) was positively and significantly associated (r = .440**, P<0.05) with tax compliance (TC). This study enhances taxpayers’ knowledge and helps to execute the policies to increase the efficiency and transparency of the tax system in Nepal. Acknowledgment The authors would like to express their gratitude to Prof. Dr. Achyut Gnawali and Mr. Prem Bahadur Budhathoki, Associate Professor, and Dr. Gangaram Bishowakarma, Assistant Professor of Tribhuvan University, Kathmandu, Nepal, for extending warm support towards the research work through the academic inputs.

Does War Make States? Military Spending and the Italian State‐Building, 1861–1945

ABSTRACTWe present empirical evidence on the relationship between military spending and the expansion of other government budget items and tax revenues from the unification of Italy (1861) up to the end of World War II. Until 1922, investments in education and social transfers to families mainly moved in step with defence spending. This means that increases in defence spending imply an increase in both education spending and transfers. Moreover, transfers also play a compensatory role during recessions. Increases in defence spending do not crowd out investment in capital expenditure, while disinvestment in defence is associated with an increase in investment in capital. The pro‐cyclical behaviour of tax revenues is compatible with the debt‐financing dynamic of much government expenditure. Although our analytical narrative is not universally valid, it does support the persistent centrality of external wars in the discontinuous growth and expansion of central government in the Italian state, with some exceptions explained by historical events.

Customer Responsiveness Strategy and the Performance of Kenya Revenue Authority in Mombasa County, Kenya

The customer is the primary growth determinant of an organization’s direction toward desirable performance. Proactive organizations that recognize the reality of customer focus contributions to business operations have significantly portrayed positive performance. This research aims to investigate how customer responsiveness influences the performance of an organization, with a specific focus on the Kenya Revenue Authority. To in aid establishing the foundational base of the study, theories such as the Resource Based View, Systems theory, Gap analysis Model and the Upper Echelon Theory were taken into account. The study employed the descriptive research design to comprehensively understand the current conditions and circumstances. The study's target population considered 445 KRA technical staff in Mombasa, including managers, supervisors, officers, and support staff. The study employed stratified sampling where 134 respondents were selected, who either had recently joined the company or altered their job roles according to duration of employment. To test the reliability of the study, the researcher employed Cronbach’s alpha coefficient which had a threshold of 0.7. The threshold of a coefficient should be between 0 to 1 to maintain an internal consistency indicating reliability. To accurately determine the validity of the data for factor analysis, the Kaiser-Meyer-Olkin (KMO) Test and Bartlett’s Test of Sphericity were conducted. The KMO test yielded a measure of sampling adequacy of 0.743, which indicates that the sample size was adequate for factor analysis. Data collection for the study was through the use of a close-ended questionnaire in the statement form. The data was analyzed through measures of central tendency such as mean, median, and mode. The analysis also included measures of dispersion such as variation, standard deviation, correlation analysis and regression analysis. It was observed that technology had the most substantial impact on KRA's performance. Indicating a strong positive relationship between technological implementation and performance outcomes. Service level agreements were found to be a significant predictor of performance suggesting that clear and well-structured SLAs contribute positively to the quality-of-service delivery, ensuring that customer expectations are met effectively. Top management support significance highlighted the importance of leadership and resource allocation in driving organizational success. Conversely, staff training indicated that while training is important, its direct influence on performance may be more nuanced or dependent on other mediating factors. Overall, the study found that customer responsiveness strategies significantly influence the performance of KRA in Mombasa County.

THE NEXUS BETWEEN CORRUPTION AND RESOURCE THEFT: IMPLICATIONS FOR NATIONAL SECURITY IN RESOURCE-RICH NATIONS

The nexus between crude oil theft, corruption, and national security in Nigeria is complex and multifaceted. Oil theft directly impacts the nation's economy by reducing government revenue, which in turn limits the resources available for critical public services, including security and law enforcement. Corruption, by weakening governance and fostering impunity, compounds these security threats, allowing criminal networks to thrive This study investigates the intricate relationship between crude oil theft, corruption, and national security in Nigeria. The study utilised a longitudinal research design, examining secondary data from 2013 to 2023, including metrics such as oil theft, political corruption, violent events, and fatalities. Data from sources like the Armed Conflict Location & Event Data Project (ACLED), the National Oil Spill Detection and Response Agency (NOSDRA), and the World Bank's political corruption index were analysed using Poisson regression to assess the effects of oil theft and corruption on national security. Findings revealed that crude oil theft has a statistically significant positive relationship with violent events, while political corruption, represented by the political corruption index, shows a strong negative relationship with security, with an estimate of - 26.475. This could imply that corruption may sometimes act as a stabilising force whereby, in corrupt systems, those in power might suppress violence to maintain order and avoid public attention that could threaten their positions. However, political corruption has a substantial positive effect on fatalities, with an estimate of 19.589. This highlights that as corruption increases, fatalities rise significantly, pointing to the detrimental impact of corruption on state institutions and the rule of law. These findings also suggest that while crude oil theft directly contributes to insecurity, political corruption may reduce overt violence by maintaining fragile stability. Therefore, addressing these issues requires a nuanced approach. Policymakers must recognise that combating corruption and oil theft alone will not be sufficient to ensure national security; instead, strategies should tackle both issues simultaneously, understanding that reducing visible violence does not always eliminate the underlying causes of insecurity.

Research trends in gambling tax dynamics: A bibliometric analysis

Gambling has been around for a long time and continues to evolve as it becomes integrated with video games. In its development, gambling continues to have negative impacts both economically and socially, such as unemployment, tax losses, divorce, and suicide. However, gambling can also have a positive impact, such as an increase in government revenue if taxed appropriately. This study aims to offer a thorough analysis of many publications from the last decade and monitor the progress of scientific research on gambling taxes as found in the Scopus database, utilizing VOSviewer and WordStat. In this study, the method used was bibliometric analysis. Between 2014 and 2023, a total of 132 scientific articles were dedicated to studying gambling taxes. There are a total of seven groups consisting of 111 keywords that are directly connected to gambling taxes. There are three groups of eight authors who are collaborating on a research project about gambling taxes. The study found that the University of Macau has affiliations with the majority of publications that impose gambling taxes. The United States has the biggest number of publications on the topic of gambling taxes. Studies on gambling taxes frequently confront issues of tax evasion and focus on a significant topic, namely the impact on public health and individuals. The study concluded that publications related to gambling taxes are dominated by articles from various multidisciplinary fields. This study recommends a wider range of publications and research from a more varied range of time and sources.

EFFECT OF TAX REVENUE ON EXPENDITURE ALLOCATION OF GOVERNMENT SECTORS IN SOUTHWEST STATE, NIGERIA

Taxation has been recognized as exerting a significant influence on government expenditures, which constitute a fundamental component of an economy, particularly in numerous developing and underdeveloped nations. Taxes stand out as the primary source of funding for government expenditures. The extent to which tax revenue affect expenditure allocation of government sectors in southwest state, has remained a subject of concern in the Nigerian context. Therefore the study examines the effect of tax revenue on expenditure allocation of government sectors in southwest state, Nigeria. The research design employed in this study is ex-post facto, and data were obtained from audited annual financial reports and budgets of the southwestern states governments spanning a period of forty years, from 1982 to 2022. The study encompassed all six states within the southwest region of Nigeria. Both descriptive and inferential statistical techniques were utilized for analysis. Descriptive statistics, such as minimum, maximum, mean, and standard deviation values, were computed. Variance Decomposition Analysis (VDA) and Impulse Response Function (IRF), integral components of time series regression analysis, were employed to assess all study variables at a significance level of 5%. Regression analysis was conducted to investigate the impact of tax revenue on the allocation of government expenditures across various sectors in the southwest states of Nigeria. The study concluded that there is significant relationship between revenue and expenditure profile of state governments in southwest states, Nigeria. The study therefore recommended that government should explore avenues to diversify revenue sources beyond taxes.

Building a Culture of Compliance: The Influence of Tax Socialization and Inclusion on Indonesian Micro, Small, and Medium Enterprises (MSMEs) Taxpayers

Taxes serve as the cornerstone of any nation's economic framework, functioning as both a regulatory mechanism and a primary source of government revenue. They are indispensable for managing taxpayer behavior, ensuring a steady stream of state income, and financing essential public services and infrastructure development. In Indonesia, the compliance of micro, small, and medium enterprises (MSMEs) is pivotal to the nation's fiscal well-being. This study delves into the factors that influence MSME taxpayer compliance, specifically focusing on the role of tax socialization, tax inclusion, and the involvement of tax volunteers. A quantitative research approach was adopted, involving the distribution of questionnaires to MSME taxpayers in Indonesia. The data collected was then analyzed using SPSS software to test the hypotheses regarding the impact of tax socialization, tax inclusion, and tax volunteers on taxpayer compliance. The findings of this study reveal that tax socialization and tax inclusion positively influence the level of tax compliance among Indonesian MSME taxpayers. Furthermore, the involvement of tax volunteers also has a positive impact on enhancing taxpayer compliance. This study underscores the importance of tax socialization and tax inclusion in fostering a culture of compliance among MSMEs in Indonesia. The positive role of tax volunteers in assisting taxpayers and promoting compliance is also highlighted. These findings have significant implications for tax authorities in their efforts to improve tax compliance rates and enhance revenue collection.

Factor influencing taxpayer compliance on voluntary tax disclosure program initiative: Case of Kenya revenue authority southern region

Tax is the primary source of government revenue, its vital component in running daily government activities. Not collecting enough tax causes the government to strain or stalling of its mandates, therefore its role of every government to mitigate and maximize its tax collection scope. The research sought to investigate the factors influencing taxpayer compliance on voluntary tax disclosure program in Kenya Revenue Authority, case of Southern region. The specific objectives of these research included, to assess the effects of Tax Sanctions on the taxpayer on participation in a voluntary tax disclosure program. To determine the impact of subjective norms of taxpayer participation on the Voluntary tax disclosure program. To evaluate the influence of taxpayer knowledge on participation in a voluntary tax disclosure program. The main challenge that was thematic for investigation, why despite the opportunity to declare asset without punitive punishment, still there is few uptakes for the program. The geographical location of the research was in Southern Region Domestic Taxes department on its six tax office namely; Voi, Mombasa South, Lamu, Malindi, Mombasa North and Diani for the financial year 2023/2024. The study sought to use descriptive approach, where a sample size of 150 was derived from a population of 230 staffs in Compliance Domestic taxes. Data collection was done using online well-structured questionnaire via Kobo-Collect in a random sampling and analyzed using SPSS version 28. To test validity and reliability of the data pilot test was conducted and Cronbach alpha and KMO-test proved data to be reliable and valid. The output of the analysis showed the regression model whose covariates, Tax sanction (t=2.448, P<0.016) subjective norm (t=3.347, P<0.001) and taxpayer Knowledge (t=7.827, P<0.00) were all significant at 95% level. Moreover, the R2 =0.951 which means the exploratory variables explained 95.1% variation of Compliance to the Voluntary tax disclosure. The ANOVA result showed the data was fit to the model was good at (F=942.61, p<0.00). The study concluded indeed, Subjective norms, Tax Sanction and Taxpayer Knowledge influences greatly compliance of Taxpayer towards Voluntary tax disclosure. The research implied that proper use of tax sanction such us fines, penalties, and interest on taxpayers would increase compliance. Also educating taxpayer is essential as the decisions made by some taxpayers depend on the knowledge they have acquired. Also on subjective norms, some behaviors are traceable as some are based on influence of association hence compliance officer need to continuous encourage taxpayer to comply. This research recommends that the authority through the compliance officer, use of subjective norms, Taxpayer knowledge and Tax sanction as a mitigating strategy to mitigate on Voluntary tax disclosure, through this it will increase tax base and revenue mobilization and compliance status of Taxpayers.

Assessing the Future of Oil and Gas Production and Local Government Revenue in Five Western US Basins

Oil and gas production is a major source of public revenue in many US regions, but uncertainty exists over the future of demand for hydrocarbons. We model how oil and gas production and related government revenue change in five western US basins depending on future oil and natural gas prices under three scenarios of climate policy ambition. We find that the Green River and San Juan basins experience production declines across all scenarios, while production in the Bakken, Permian, and Powder River basins are more dependent on prices. Government revenue generally follows the direction of production, but these relationships are not directly proportional. Under the lower price scenarios, revenue declines more steeply than production because it reflects both production and prices, which both decline. Long-term permanent funds, which are in place across all the states we examine, provide an important fiscal cushion for school districts, their primary beneficiary. JEL Classification: H71, H72, H73, O13, Q41, Q48

Effect of Tax Morale on Value Added Tax Compliance Among Medium Taxpayers in North of Nairobi Tax District, Kenya

Purpose: Tax compliance is important as it has a direct impact on revenue for most governments around the world. Despite the reforms that the Kenya Revenue Authority has been undertaking to increase revenue collection, it has of late failed to meet its revenue targets, particularly VAT targets. There has also been existence of fluctuations in VAT collection over the past couple of financial years. The objective of the study is to showcase the effect of tax morale on Value Added Tax compliance among medium taxpayers in north Nairobi tax district, Kenya. The study has been guided by the ability to pay theory. Methodology: The study adopted the explanatory research design and primary data was collected using structured questionnaires with closed-ended questions. The total target population was 2,376 VAT-registered medium taxpayers in north of Nairobi tax district, Kenya and the sample size was 342 respondents. Out of the 342 respondents targeted, 274 questionnaires were correctly filled and returned, indicating 80% response rate. Results: The study also found that tax morale had a positive and significant effect on Value Added Tax compliance β=0.173 p-value =0. 016. Conclusion: The study recommends that the government of Kenya should allocate resources towards improving taxpayer services, including helplines, online portals, and advisory services.

Effect of Integrated Customs Management Systems (ICMS) on Customs Duty Performance in Nairobi County, Kenya

Purpose: Tax is an important stream of revenue for government’s development projects and therefore all efforts must be made by governments to ensure that it is accurately and efficiently collected to facilitate the government’s operations. This study sought to determine the of integrated customs management system on factors affecting customs duty performance Nairobi County, Kenya. The theories supporting the study is comparative theory of international trade. Methodology: The study employed explanatory research design. The target population of this study was 438 respondents comprising customs heads of departments, customs officers and customs agents at Embakasi Inland Depot, Nairobi. with a sample size of 209, out of which 173 respondents correctly filled the questionnaires and submitted them accordingly. The data collected was analyzed through descriptive and inferential statistics. A linear regression model was used. Results: The coefficient study showed that a unit change in ICMS increases customs duty performance significantly β =0.205 p-value =0.000<0.05. Conclusion: The study recommends that the KRA and the government of Kenya prioritize the continuous improvement of the Integrated Customs Management System (ICMS). Customs management should ensure full utilization of the ICMS by training customs officials and stakeholders, given its positive impact on duty performance. Future research may be carried out on the effects of tax incentives on Customs duty performance

Effect of Alternative Dispute Resolution on VAT Compliance Among Tax Agents in Nairobi County, Kenya

Purpose: Tax is a vital source of government revenue in almost all countries in the world as it ensures that the government can offer goods and services to the general public. Therefore, tax compliance is critical in all economies, which recognize the role played by revenue collected from tax in national development. The key aim of the current study was to establish the effect of alternative dispute resolution on value added tax compliance among tax agents in Nairobi County, Kenya. The study was anchored on the theory of conflict of management. Methodology: The study adopted an explanatory research design. The study targeted 321 agents in Nairobi County while the sample size was 178 respondents. In this study, 178 out of 134 distributed questionnaires were completed and returned correctly, achieving a 75% response rate. The study used primary data, which was collected through questionnaires. The data collected was analyzed using both descriptive and inferential statistics. A linear regression model was used to establish the strength of the relationship between independent and dependent study variables. Results: Alternative Dispute Resolution also exhibits a positive and significant correlation with VAT Compliance, with a coefficient of β =0.093 p<0.05. Conclusion: The study recommended that the KRA should enhance its alternative dispute resolution mechanisms by providing clear guidelines, increasing the availability of mediation and arbitration services, and ensuring that tax agents are well-informed about these options. Future research should examine the impact of the regulatory framework on VAT compliance.

The Influence of Training and Development Programme on Staff Performance: A Case of Tanzania Revenue Authority in the Coast Region

Training and development programmes play a crucial role in enhancing staff performance within an organization. These programmes are designed to improve employees’ knowledge, skills, and abilities, ultimately leading to increased productivity, efficiency, and overall organizational success. One of the primary reasons why training and development programmes are crucial for staff performance is that they contribute to the enhancement of employees’ skills and knowledge. Through targeted training initiatives, employees can acquire new skills, stay updated with industry best practices, and gain a deeper understanding of their roles within the organization. It is in this context, this study assessed the influence of training and development program on staff performance: a case of Tanzania Revenue Authority, coast region. The study focused on three specific objectives including to identify existing practice of training and development programmes offered by TRA coast region, to determine whether training and development programmes have effects on employees’ performance at TRA coast region and to investigate the current challenges the TRA coast region experiences in training it employees. The study was done at TRA Coast region where by a sample of 92 respondents from the population of 120 senior and operational employees who randomly and stratified sampled participated. The study was guided by transformative learning theory. Descriptive research design was employed. Questionnaires and interview questions were used to collect data. Data was analyzed using descriptive and regression analysis. Findings suggest that on-the-job training at TRA allows employees to acquire specific job- related skills in a real work environment. Through engaging in actual tasks and responsibilities under the guidance of experienced mentors or supervisors, employees can develop a deeper understanding of their roles and responsibilities, Findings further suggest that off-the-job training opportunities have played a significant role in enhancing employees’ overall professional development at the Tanzania Revenue Authority (TRA). It was revealed from the study that TRA is relevant to employees’ job responsibilities, and that the feedback received during on-the-job training is constructive while training and positively impacted employees’ job performance. Findings revealed that off-the-job training opportunities enhanced employees’ overall professional development. The study concludes that on-the-job training programmes at TRA are relevant to employees’ job responsibilities, and for that case the feedback received during on- the-job training is constructive. The study also concluded that induction training provided by TRA Coast Region adequately familiarizes new employees with organizational policies and procedures. It was recommended that the management of TRA should continue investing in training and development programmes since Training and development programmes leads to improved employee performance by equipping them with the necessary skills and knowledge to carry out their duties effectively.

Harnessing SSB tax for health and economic prosperity: A Path to sustainable growth

This study explores the implementation of sugar-sweetened beverages (SSB) excise taxes as a policy tool to address public health challenges related to excessive sugar consumption in Indonesia. With rising rates of diabetes and obesity, SSB taxes have been widely adopted globally, yielding positive outcomes such as reduced consumption and increased government revenue. This research synthesizes global evidence through a scoping review and examines how an SSB excise tax could be structured to fit Indonesia’s unique socio-economic context. The findings suggest that a tiered tax based on sugar content would be most effective in curbing consumption while encouraging the beverage industry to innovate healthier alternatives. Revenue generated from the tax, estimated to reach IDR 9.68 trillion annually, could be directed toward public health initiatives, particularly for preventing and managing non-communicable diseases. The study also recommends complementary public health campaigns to raise awareness of the risks associated with sugar consumption. Effective collaboration between the Directorate General of Taxes and the Ministry of Health is crucial for successfully implementing and monitoring the policy. The introduction of SSB excise taxes in Indonesia represents a strategic opportunity to enhance public health, generate substantial government revenue, and support long-term sustainable development.

Modelling the potential impact of a tax on fruit juice in South Africa: implications for the primary prevention of type 2 diabetes and health financing

BackgroundSouth Africa is experiencing a persistent growth in non-communicable diseases. Diabetes is among the top ten causes of mortality, especially among women, which is partly driven by high levels of added sugar consumption and obesity. To reduce obesity rates and the incidence of diabetes, South Africa introduced a tax on sugar sweetened beverages (also known as the Health Promotion Levy (HPL)) in 2018. The tax is applicable to sugar-sweetened beverages but excludes 100% fruit juice. The government is currently considering extending the tax to include fruit juices. This study models the potential health and economic impact of taxing fruit juices at 20% of the retail price of one liter.MethodsTo analyze the distributional impact of the tax, this study uses extended cost-effectiveness analysis methodology. Data on price elasticities, healthcare cost, income, fruit juice consumption were sourced from the literature and representative national surveys. The potential impact of the tax on diabetes incidence, prevalence, mortality, and financial benefits were estimated for each income group (lowest, quintile 1 to highest, quintile 5).FindingsWe estimate that a 20% tax on fruit juice would avert 156,640 incident cases of type 2 diabetes mellitus over 20 years, with most disease averted occurring among the first- and fifth-income groups. Averted deaths from diabetes would average 2,000 deaths per quintile (for quintiles 1 to 4) and about 2,800 in quintile 5. The improved health resulting from averted incidence and deaths will reduce overall healthcare expenditure by R7.5 billion over 20 years, of which R2.3 billion will occur in the fifth quintile. The South African government will also save about R300 million in subsidizing diabetes-related healthcare cost as a result of prevention; and would raise R8.6 billion in tax revenues per annum. Out-of-pocket expenditure savings will be R303 million and a financial risk protection (money-metric value of insurance) of R4.6 billion over the 20-year period.ConclusionWe conclude that an HPL that significantly raises the retail price of fruit juices would reduce consumption and diabetes-related morbidity and mortality. The tax will also provide significant financial benefits in the form of reduced healthcare costs for both government and households as well as providing financial risk protection to individuals. Health taxes are win-win policies that improve population health and generate revenue for governments to fund public health services delivery and thus improve overall health financing activities of the government. Therefore, population level disease prevention measures such as health taxes are important for achieving universal health coverage.