Government Revenue Research Articles

Effect of Tax Invoice Management System on Value Added Tax Compliance Among Small and Medium Enterprises in Eldoret Town, 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 so as to facilitate the government’s operations. The objective of the study was to investigate the effect of tax invoice management system on Value Added Tax compliance among small and medium enterprises in Eldoret town, Kenya. The study was guided by Diffusion of Innovation (DOI) Theory. Methodology: The research design for this study was explanatory. The population of this study will be 3872 SMEs in Eldoret town and sample size of 362 SMEs who are SME owners/Managers. Questionnaire was used to collect primary data and analysis will include both descriptive and inferential statistics. Results: The study found that Tax invoice management system and value Added Tax compliance is positive and statistically significant β=0.483. Conclusion: In conclusion the study revealed that there was a significant relationship between Tax invoice management system and Value Added Tax compliance among small and medium enterprises in Eldoret town, Kenya. The study recommends that that KRA should formulate policies to enhance and actively promote the adoption of Tax invoice management systems among SMEs.

Comparative impact of fiscal and monetary policies on economic growth in Nigeria

This work examined the comparative impact of fiscal policy and monetary policy on economic growth in Nigeria over the period 1981 to 2021 using annual time series data on real gross domestic product, broad money supply, government expenditure, total government revenue, and interest rate (lending rate). The objectives are to determine whether the fiscal policy or the monetary policy impacts more on economic growth in Nigeria and to ascertain the causality relationship between fiscal policy, monetary policy and economic growth in Nigeria over the period. The study employed ARDL Bounds Testing methodology in determining whether long run relationship exists between fiscal policy (proxy government expenditure and total government revenue), monetary policy (proxy broad money supply and interest rate (lending rate) and real gross domestic product. The result indicated that broad money supply representing monetary policy has positive relationship with and statistically significant impact on economic growth in Nigeria over the study period as indicated by its t-statistic and probability values of 6.436365 and 0.0000 respectively. Fiscal policy variable (government expenditure), on the other hand, has negative relationship with economic growth and statistically significant impact on economic growth in Nigeria as indicated by its t-statistic and probability values of -2.427968 and 0.0234 respectively. From the result, a change in money supply (monetary policy) affects economic growth positively while a change in Fiscal policy variable (government expenditure) affects economic growth negatively. Besides, the coefficient of monetary policy (0.457048) is greater than fiscal policy coefficient (-0.300554) and implies that monetary policy impacts more than fiscal policy impacts on economic growth in Nigeria. Therefore monetary policy does impact more than Fiscal policy on economic growth in Nigeria over the period studied. The result further indicated that there is no significant causality relationship between fiscal policy, monetary policy and economic growth in Nigeria over the period covered as indicated by the probability values of both fiscal and monetary policy variables employed and economic growth. The study therefore recommends that policy makers should focus more on monetary policy than fiscal policy so as to enhance economic growth since monetary policy has more concern with economic growth than fiscal policy. Keywords: Economic growth, fiscal policy, monetary policy, ARDL, Bound Test, Causality, Nigeria.

ЖАПОНИЯДАҒЫ САЛЫҚТЫҚ ӘКІМШІЛЕНДІРУДІ ЦИФРЛАНДЫРУ ТӘЖІРИБЕСІН ЗЕРТТЕУ

The tax policy of the state in conjunction with the methods of tax administration is a determining factor influencing the amount of tax revenues of the budget. Tax discipline, forms and close interaction between taxpayers and regulatory authorities also play a significant role. The development of information and communication technologies (ICT) in recent decades has provided the tax authorities with a wide range of opportunities to increase government revenue, improve the efficiency and quality of services provided to taxpayers, including electronic filing of returns and payment of taxes, while reducing the administrative burden on taxpayers and reducing public administration costs. The first phase of digitalization was the computerization of routine tax administration processes (such as taxpayer registration and income records), and in the second half of last decade and early this decade, many tax authorities adapted their websites to simplify operations by introducing online forms and calculators for taxpayers. In June 2017, Japan National Tax Agency published a strategic plan for the Japanese tax administration called "Looking to the Future." This includes the pursuit of sound taxation and good governance to ensure that taxes are paid based on the understanding and trust of taxpayers. The National Tax Agency of Japan is well aware of the importance of continually moving toward the future it seeks, emphasizing the goal of transparent tax administration. Keywords: tax and customs administration, OECD countries, tax and customs, administrative costs, Tax Code, tax authorities, taxpayers, tax relations, digitalization.

Trade Facilitation: Do The Custom Administration Procedures Matter?

This paper seeks to address the effect of customs administration procedures on trade facilitation in Kenya. The study employs an explanatory research design and administered questionnaires as the data instrument to gather data from 200 customs officials in Keny a. The study findings indicated that declaration of goods, documentation and verification of goods had a positive and significant effect on trade facilitation. From the results, the study concluded that customs administration procedures ha ve a significant influence on trade facilitation in Kenya. This study was anchored on Resource Based View (RBV) Theory. This research study adds to the existing knowledge and improves understanding to the building of a solid framework. The ultimate objective of enhancing t rade facilitation is evaluated against significant custom procedures such as declaration of goods, documentation completeness and verification of goods. Kenya Revenue Authority should enhance declaration of goods by ensuring that declaration of goods follo ws the international standards; should ensure accurate completion of required export documentation, comply with import/export documentation requirements and produce documents such as invoice for the goods; and should ensure thorough inspection of the goods , conduct complete inventory inspection and application of scanners in verification of goods.

Effect of Transfer Pricing on Corporation Tax Compliance Among Multinational Corporations in Nairobi Kenya

Purpose: Tax is a compulsory contribution that is made by the citizens of a country to the government for the provision of public utilities. It is evident from the National Tax Policy, 2024 that the Kenya Revenue Authority (KRA) and the government at large have recently shown a lot of interest in multinationals due to the complexity of their operations and the tendency for them to come up with complex tax avoidance mechanisms. This has also been complicated by the widespread abuse of transfer pricing models adopted when dealing with multinational corporations operating in Kenya. This study looked into effect of transfer pricing on corporate tax compliance among multinational corporation companies in Kenya. The study was guided by the following theories, AS theory, the Slippery Slope Framework, and the theory of the planned behavior. Methodology: The study employed an explanatory research design. The target population was 221 multinational corporations’ companies and a sample size of 142 respondents. Questionnaires were used to collect primary data and analysis was descriptive statistics include frequency, percentage, and mean while inferential statistics included correlation and multiple regression. Results: The study findings found out most companies in Nairobi, Kenya have transfer pricing policies that are moderately but not adequately in line with domestic tax statutes. Most companies will use transfer pricing as a tool to reduce their tax liabilities. Further, KRA is moderately but not adequately efficient in monitoring and regulating transfer pricing practices in our company. Conclusion: The study results concluded that transfer pricing affects corporation tax compliance Based on the findings, the study recommends there is a need for exchange of information and more international collaborative efforts from a policy, legal, and academic front to address aggressive tax avoidance practices from MNCs. Therefore, future studies can be conducted on the impact of Dispute resolution mechanism on corporation tax performance.

Relationships between social determinants of health and healthy body composition among Aboriginal and Torres Strait Islander youth in the Next Generation: Youth Well-being study.

Little is currently known about the relationships between body composition and the social determinants of health among Aboriginal and Torres Strait Islander youth in Australia, which could help inform policy responses to address health inequities. This study aimed to explore the relationship between various social factors and healthy body mass index (BMI) and waist/height ratio (WHtR) among Aboriginal and Torres Strait Islander youth aged 16-24 years. Baseline survey data from 531 participants of the 'Next Generation: Youth Well-being study' were used. Robust Poisson regression quantified associations between healthy body composition and self-reported individual social factors (education, employment and income, government income support, food insecurity, home environment, relationship status, racism), family factors (caregiver education and employment) and area-level factors (remoteness, socioeconomic status). Healthy body composition was less common among those living in a crowded home (healthy WHtR aPR 0.67 [0.47-0.96]) and those receiving government income support (healthy BMI aPR 0.74 [0.57-0.95]). It was more common among those with tertiary educated caregivers (healthy BMI aPR 1.84 [1.30-2.61]; healthy WHtR aPR 1.41 [1.05-1.91]) and those in a serious relationship (healthy BMI aPR 1.33 [1.02-1.75]). Social factors at the individual and family level are associated with healthy body composition among Aboriginal and Torres Strait Islander youth. SO WHAT?: The findings of this study highlight the potential for health benefits for youth from policies and programs that address social inequities experienced by Aboriginal and Torres Strait Islander people in Australia.

Analyzing Entertainment Tax Impact on Batu City's Regional Revenue and Taxpayer Compliance Levels

Entertainment tax is one of the sources of revenue for local governments. This study aims to examine the contribution of entertainment tax to Regional Original Revenue (PAD) in Batu City. The research method used is qualitative descriptive using object data at the Batu City Regional Finance Agency. Based on data from the Central Statistics Agency (BPS), Batu City's tax financial statements from 2020 to 2022 are tax revenues for the entertainment sector. In 2020, the contribution reached 12.42%, while in 2021, the contribution decreased to 8.89% and in 2022, the contribution decreased to 12.78%. Although the data has decreased and increased, it shows that the entertainment tax in Batu City has a lack of contribution to the Regional Original Revenue (PAD). The government needs to monitor the potential of taxes and conduct socialization so that this contribution can increase. In order to increase the effectiveness of entertainment tax revenue, the Batu City Regional Revenue Office needs to provide socialization to the public regarding entertainment tax rates and calculation methods.

Moderating Role of Social Value Orientation on the Relationship between Tax Service Quality and Tax Compliance among Small and Medium Enterprises (SMEs) in the North Rift Economic Bloc, Kenya

Tax revenues are crucial for government operations, providing essential economic, social, and political benefits. However, tax noncompliance by individuals and businesses can undermine these benefits by reducing government revenue and compromising the tax system’s fairness and effectiveness. As such, improving taxpayer compliance is a key government priority. This study examines the conditional effect of social value orientation on the relationship between tax service quality and tax compliance among small and medium enterprises (SMEs) in Kenya. Guided by a positivist philosophy and explanatory design, the study sampled 393 SMEs owners/managers from a population of 21,232 through stratified sampling. The data were collected using self-administered questionnaires, with reliability and validity confirmed using Cronbach’s alpha and factor analysis. The analysis employed descriptive and inferential statistics and multiple regression analyses using the Andrew Hayes Process macro. Findings indicated that both tax service quality (β =.541, p<0.01) and social value orientation (β = 0.333, p < 0.01) significantly and positively affect tax compliance. Additionally, social value orientation significantly moderates the relationship between tax service quality and tax compliance (β = 0.5059, p < 0.01, R2 = 0.0774). The study concludes that high-quality tax service and consideration for social values of the taxpayer are crucial for improving the compliance level of SMEs. Governments encourage greater compliance by providing efficient, user-friendly, and transparent services, as well as through the inclusion of social values in policy and program design. Future research should explore other factors influencing compliance through a mixed-method approach.

Fighting Inequality Through a Progressive Tax System for a Just Future in Tanzania

The problem of inequality is one of the economic problems that developing countries still face including Tanzania. This research therefore focuses on presenting the status and trends of inequality and the progressive tax system to pay for a just future in Tanzania. Research was anchored on the Ability-to-Pay Principle. The study was typically a desk research whereby it dwelled on analyzing and synthesizing large amounts of complex secondary data/information and literature concerning the issue of inequality in Tanzania. The target population for this study consists of secondary data sources, which included Peer-reviewed journal articles on taxation and inequality Government reports and taxation data from the Tanzania Revenue Authority (TRA). A purposive sampling methodology was employed to choose relevant studies and reports. This approach ascertained that only sources directly related to the research goals were included. The sample consisted of 20 sources, selected based on criteria such as: Year of publication. Content analysis was adopted in analyzing data to discover themes, patterns and trends related to progressive tax systems, income inequality reduction, and wealth distribution. Key variables such as tax policies, inequality measures (Gini coefficient), and wealth distribution patterns were extracted and analyzed to determine the effectiveness of progressive taxation in Tanzania. Findings revealed that while progressive taxes can be a remedy, the presence of large informal sectors, as in Tanzania, hinder their reach. Thus, while Tanzania’s progressive tax structure holds potential, more reforms are in need to boost implementation alongside widening the tax base. Further, the study concluded that there is little wealth-related taxation in Tanzania. Also, assets such as land ownership or financial assets are hardly/not taxed. The study recommended that given the situation, there is a great need to improve the tax collection with a focus on the existing tax base in Tanzania.

The Impact of Corporate Social Responsibility on Tax Avoidance in the Listed Companies on the Iraqi Stock Exchange

This study explores the impact of corporate social responsibility on tax avoidance in the Iraqi listed companies on the Iraqi stock exchange. The sample of companies include companies which are listed on the Iraqi Stock Exchange, numbering (33). Data was taken for the years from 2016 to 2021, and the data was analyzed using multiple regression and panel data analysis.The results indicated (corporate social responsibility) that there is a negative relationship between corporate social responsibility and tax avoidness and Iraqi companies suffer from slight levels of tax avoidance through adopting social responsibility practices. We note from the study that there is a weakness in the application of social responsibility accounting. Commitment to corporate social responsibility leads to reduced tax avoidance. Among the conclusions is the clear weakness in the internal control systems of companies in terms of the extent of commitment to social responsibility and attempts to benefit from tax savings to achieve personal gains. The research came out with a set of recommendations, the most prominent of which is the need to strengthen the supervisory role to reduce tax evasion operations, as using social work as a means of tax evasion harms government revenues in the state’s general budget.

Examination of Current Practices, Challenges and Strategic Reforms for Probate Tax, Governor's Consent, and Stamp Duty in Anambra State

This research examines the critical components of property law administration in Anambra State, focusing on probate tax, governor's consent, and stamp duty. These mechanisms are vital for ensuring lawful property administration, transfer, generating government revenue, and maintaining the integrity of legal documents. The study highlights the significance of these elements in the socio-economic development of the region and their impact on property transactions and inheritance. Through a detailed analysis of current practices, challenges, and inefficiencies, the research identifies major issues such as bureaucratic delays, high costs, lack of public awareness, and enforcement inefficiencies. The study utilizes a sample size of 400 respondents, including property owners, legal practitioners, and government officials, to gather data on their experiences and perceptions. The findings reveal significant non-compliance and evasion, exacerbated by complex procedures and opaque processes. To address these challenges, the research proposes strategic reforms including simplification of procedures, leveraging technology, enhancing public education, and introducing stricter penalties for non-compliance. These recommendations aim to improve efficiency, transparency, and compliance in property law administration, thereby promoting economic development and orderly land use in Anambra State.

How Important are Commodity Terms of Trade Shocks in Explaining Government Tax Revenue Fluctuations? Evidence from Ethiopia

Using a new database of commodity terms of trade and identifying country-specific commodity export and import price shocks separately, this article mainly aims to examine the importance of commodity export and import price shocks in explaining government tax revenue fluctuations using Ethiopia as an example over the sample period 1980–2019. This article employs a structural vector autoregressive model and forecast error variance decomposition analysis to address this objective. The results show that commodity export and import price shocks account for around 48% of government tax revenue fluctuations. While commodity export price shocks contribute to around 37% of fluctuations in government tax revenue, commodity import price shocks account for only 11% of government tax revenue fluctuations. These findings are discussed in terms of their policy implications. JEL Classification C32, F41, F44

Effectiveness of implemented global dietary interventions: a scoping review of fiscal policies

BackgroundAlthough the World Health Organisation (WHO) has proposed the use of fiscal policies to mitigate consumption externalities such as overweight and obesity-related diseases, very little is known about the impacts of the different types and framing of national and/or regional fiscal policies that have been implemented over the years. There is the need to provide up-to-date evidence on the impact of fiscal policies that have been enacted and implemented across the globe.MethodsWe conducted a scoping review of all implemented government fiscal policies in the food and drinks sector to identify the different types of fiscal policies that exist and the scope of their impact on consumers as well as the food environment. Electronic databases such as the Web of Science and Google Scholar were used to search for appropriate literature on the topic. A total of 4,191 articles were retrieved and 127 were synthesized and charted for emerging themes.ResultsThe results from this review were synthesized in MS Excel following Arksey & O’Malley (2005). Emerging themes were identified across different countries/settings for synthesis. The results confirms that fiscal policies improve consumers’ health; increase the prices of foods that are high in fats, sugar, and salt; increase government revenue; and shift consumption and purchases towards healthier and untaxed foods.ConclusionGovernments already have the optimum tool required to effect changes in consumer behaviour and the food environment.

Trade Facilitation as a Catalyst for Government Revenue Enhancement: Exploring the Synergies Between Trade Efficiency and Tax Collection

Customs administrators worldwide are mandated to mobilize national revenue collections through the assessment and collection of applicable duties and taxes on all imports and exports. One of their primary concerns following the ratification of the Trade Facilitation Agreement is the need to optimise revenue collections while simultaneously upholding trade facilitation. This research assesses trade facilitation implications on government revenue mobilization in developing countries with a particular emphasis on Zimbabwe. The paper adopts a qualitative approach, capturing several subjective elements including the examination of the Critical Success Factors for enhanced revenue collection as well as the evaluation of trade facilitation as a solution to customs revenue leakages. Purposive sampling was employed to collect data from employees working in the Customs Division at the Zimbabwe Revenue Authority. Eighty questionnaires were distributed to participants working in Beitbridge, Chirundu, Forbes border posts and the Robert Mugabe International Airport targeting Customs Senior Managers, Customs Middle Managers, Revenue Supervisors and Revenue Officers as key respondents. Data was analysed using the Statistical Package for Social Sciences version 29. This analysis focused on four dimensions of trade facilitation, which includes port efficiency, customs environment, regulatory environment, and electronic-business. The findings indicate that trade facilitation reforms, when executed appropriately in conjunction with enhancements in electronic-business, port efficiency, customs environment and the regulatory framework, can effectively augment revenue collection. Regulatory environment improvements are key in influencing increasing revenue collection and should be prioritised in resource allocation for the achievement of best possible outcomes. We recommend ‘continuous refresher training’ on trade facilitation awareness targeting all stakeholders in ports of entry, accompanied by the implementation of robust risk management strategies as well as intensified implementation of integrity management tools.

Income inequality, unemployment, and government transfer: what do their dynamics tell us

PurposeIn this research, we explore the dynamics among measures of income inequality in the USA, male and female unemployment rates and growth in government transfer using time series data.Design/methodology/approachThis research adopts a macro-econometric approach to estimate a structural VAR model using time series data.FindingsOur structural impulse responses found that growth in government transfer increases unemployment rates for both males and females. Female income inequality declines with increased government transfer. When the female income ratio rises, we observe that government transfer outlays fall over the forecast horizon. Variance decomposition finds that growth in government transfers is impacted by the male unemployment rate relatively more than the female unemployment rate. This research, therefore, suggests gender-specific government transfers to reduce income inequality. This, in effect, may reduce government transfer outlays over time.Practical implicationsThis research, therefore, suggests gender-specific government transfers to reduce income inequality. This, in effect, may reduce government transfer outlays over time.Originality/valueThis research investigates the dynamics among income inequality, government transfer and unemployment rates. There is a dearth of research articles that adopt a macro-econometric in this area.

Fiscal policy and deforestation

We investigate the impact of fiscal policy on deforestation in the Brazilian Amazon and Atlantic Forests. We first construct a theoretical dynamic model to examine the effects of government spending and tax revenues on the environment. We then run a VAR model to test the implications of fiscal policies on Brazilian deforestation, using data from June 1998 to May 2022. Our results suggest that government expenditures reduce deforestation in both forests. Moreover, deficit-inducing and balanced-budget fiscal policy shocks have dampening effects on deforestation, with the latter being more effective. This is good news for developing countries like Brazil. They can combat deforestation through fiscal policy in a way that doesn't worsen their fiscal situation. Our findings were unaltered when we considered the effects of a simulated fiscal policy based on spending on public goods only (social assistance, science and technology, defense, education, health, national security, and transportation).

Revisiting fiscal deficit sustainability and revenue-expenditure nexus in India

The COVID-19 epidemic has brought to the emergence of fiscal sustainability as an exceptionally challenging issue for both emerging and advanced economies. In this context, it is imperative to assess the sustainability of fiscal deficit in India for the Central and State level for the period 1970–71 to 2021–2022 and 1973–74 to 2021–22, respectively. Furthermore, the study also seeks to establish the cause-and-effect relationship between government expenditure and revenue. The application of Gregory-Hansen cointegration test supports sustainability of fiscal deficits for Central and State governments individually. Additionally, the ARDL model for cointegration indicates that both governments exhibit "weak" sustainability of the fiscal deficit. Finally, the Toda-Yamamoto Granger non-causality test provides evidence in favour of the "spend-tax hypothesis" for both governments. In this backdrop, the present study posits that it is essential for governments to implement fiscal consolidation and prudent fiscal policies in order to reduce the magnitude of the budget deficit, optimise the execution of monetary and exchange rate policies, and foster development driven by the private sector. This approach is crucial to ensure long-term fiscal sustainability and economic stability in India, especially aftermath of the COVID-19 pandemic.

Analisis pajak restoran dan pajak hotel terhadap pertumbuhan pendapatan asli daerah Kota Manado

Taxes are the main source of state revenue. Regional taxes are divided into two parts, provincial taxes and district/city taxes. According to Law no. 1 of 2022 restaurant tax and hotel tax are included in district/city taxes. Restaurant tax and hotel tax are important contributors to the PAD revenue of the city of Manado. The aim of this research is to see the contribution of restaurant taxes and hotel taxes to Original Local Government Revenue (PAD) in Manado City from 2021 to 2023 with contribution percentages in accordance with applicable regulations. This type of research uses qualitative descriptive methods. Based on the results of research conducted at the Manado City Regional Revenue Agency, the percentage of restaurant tax contribution to PAD was 97.26% and the percentage of hotel tax contribution to PAD was 68.3%. The realization of restaurant taxes and hotel taxes increases every year. This shows that restaurant tax makes the largest contribution to Manado City's Original Regional Income.

A Comprehensive Review of Tax Policy Changes and Tax Revenue in Kenya

Government revenue is crucial for fostering economic growth, especially in emerging economies where financial autonomy matters. Mobilising this revenue is key to achieving the United Nations Sustainable Development Goals (SDGs) focused on productivity and inclusive growth. This study analyses Kenya's tax revenue trends from 2001 to 2021, particularly the impact of tax policy reforms on the tax-to-GDP ratio. The findings reveal a significant increase in Kenya's tax revenue from 182,418 million shillings in 2001 to 1,692,662 million shillings in 2021, reflecting the effectiveness of tax reforms. It notes a shift towards direct taxes, which increased both in absolute terms and as a portion of total revenue, indicating improved compliance and administrative efficiency. Key reforms, such as the Tax Modernization Programme and the digital iTax system, enhanced revenue collection by improving compliance and tax base widening. While indirect taxes have traditionally dominated, the gap with direct taxes has narrowed, leading to a more balanced revenue structure. The study also highlights challenges, including political disruptions in 2007 and the economic effects of the COVID-19 pandemic in 2020, emphasising the need for resilient revenue strategies. Ultimately, the research concludes that continuous tax policy reform and improved administrative efficiency are essential for Kenya's fiscal sustainability and broader economic development goals.

Nurturing Environmentally Responsible Practices Using Top Management Role on Effective Training and Supplier Orientation to Promote Green Logistics Management Practices

Purpose: This study investigated top management role on effective environmental training, using supplier environmental orientation to promote green logistics management practices. This was a deductive study since the positivist worldview was used to address the query about the relationship between variables. Methodology: The study used a quantitative method, which is consistent with the paradigm that was chosen. Data from the study population, which included Ghanaian manufacturing, agriculture, mining, and extraction companies, was gathered through questionnaires. The target population's size was ascertained using the Ghana Revenue Authority (GRA) database. The scientists used the Krejcie and Morgan (1970) sample size estimation table. Given the above, a sample size of 300 firms was selected from a total of 1178 respondents. The inclusion of descriptive statistics, such as Mean (x̄) and Standard Deviation (SD), contributes to a comprehensive understanding of the data. The application of SPSS software, version 25, for data analysis underscores a commitment to using reputable tools in the research process. Findings: The conclusion drawn from the results yielded robust reputable evidence in support of the positive relationship between environmental training and green logistics management practices. Unique Contribution to Theory, Policy, and Practice: Management should prioritize partnerships with suppliers who align with sustainable practices and contribute to the adoption of green logistics management practices within the supply chain.