Income Tax Revenue Research Articles

Trade Openness And Service Sector For Income Tax Revenue: Exploring Government Expenditure’s Role Within

This study aims to examine the effect of trade openness and service sector on income tax revenue in East Asia and Pacific countries from 2008 to 2019. It was examined by setting government’s expenditure as a moderating variable and manufacturing sector and regulatory quality as control variables. It was performed by using a panel-corrected standard error (PCSE) model. The results of the study show that prior to moderation, trade openness has no significant effect, while the service sector has a significant negative effect on income tax revenue. After being moderated by government’s expenditure which has a significant positive effect on income tax revenue, the government’s expenditure moderates the effect of trade openness and the service sector on income tax revenue. However, the moderation only increases the trade openness’ effect on income tax revenue. The service sector’s effect on income tax revenue is reduced by the moderation. It implies that the optimization of income tax revenue can be carried out through government’s expenditure so that the trade openness and the service sector can be boosted. However, to prevent the negative effect of the service sector on income tax revenue, additional efforts are needed to make the informal sector from the service sector as the source of negative effect become the formal sector.

Impact Analysis of Income Tax Revenue on GDP Economic Growth of Nepal

This paper investigates the relationship between income tax revenue and GDP economic growth in Nepal from 2070 to 2079B.S. The study draws upon the Economic Survey of Nepal and the data produced by Nepal Rastra Bank. By employing a linear regression model, it reveals significant influence of income tax revenue on the progression of Nepal's GDP. Methodology involves meticulous data collection and comprehensive statistical analysis. The linear regression model serves as the primary analytical tool to discern the nature and magnitude of the impact of income tax revenue on GDP economic growth. It demonstrates a positive relationship between income tax revenue and GDP progression, implying that an increase in income tax revenue correlates with a corresponding rise in Nepal's economic growth. This outcome underscores the importance of effective tax policies and revenue collection mechanisms in fostering economic development and stability in the country. In conclusion, the empirical evidence presented here highlights the pivotal role of income tax revenue in shaping the country's economic trajectory, making it an important area for policy intervention and reform as Nepal navigates its path towards prosperity in the 21st century.

Evaluating the Veracity of the Laffer Curve in Flat-Income-Tax Economies

The Laffer Curve is a concept that postulates a concave downward curve, representing the relationship between a country’s tax rates and tax revenue. This theory proposes that an increase in tax rates would initially raise the government’s tax revenue to a certain threshold, and further hikes in tax rates beyond this threshold would result in a decline in total tax revenue. This paper aims to empirically evaluate the validity of the Laffer Curve theory within nations with a flat income tax system. By establishing a quadratic model accounting for the changes in income tax rates and tax revenue of eleven nations, this paper has found that only one of them verifies the Laffer Curve theory. The discrepancy is further analyzed, and the limitations of the model are identified, with further research suggestions in later sections.

Peran dan Kontribusi Pajak Reklame terhadap Pendapatan Asli Daerah Kabupaten Asahan

Advertisement tax makes a significant contribution to increasing Asahan Regency's original regional income. Therefore, this research aims to discuss in depth the role of advertising tax on Original Regional Income in Asahan Regency and identify its potential impact on development and progress of the local area. The method used in this research uses quantitative descriptive research methods. The type of data used in this research is secondary data originating from the Central Statistics Agency (BPS) in the period 2016 to 2020 regarding the realization of regional tax revenues and the realization of Regional Original Income (PAD) revenues in Asahan Regency. The results of data analysis show that the role and contribution of advertising tax is very lacking in Asahan Regency's Original Regional Income (PAD). It can be seen from the contribution figures, namely in 2016 it was 2.06%, in 2017 it was 1.86%, in 2018 it increased by 2.30%, in 2019 it was 1.81%, and in 2020 it was 0.30%.

The Influence of the Motor Vehicle Tax Reduction Program and Exemption of Transfer of Title Fees on Taxpayer Compliance in the North Jakarta Region

The aim of this research is to determine the influence of hotel tax revenues on the level of economic growth in DKI Jakarta Province, the influence of motor vehicle tax revenues on the level of economic growth in DKI Jakarta Province, and the influence of hotel tax revenues and motor vehicle taxes together (simultaneously) on the level of economic growth in DKI Jakarta Province. This research uses a quantitative descriptive method with data collection techniques through distributing questionnaires. This research uses the realization of Original Regional Income revenue for the DKI Jakarta Province during 2012-2022, using multiple linear regression data analysis techniques. The results of this research show that there is. There is an influence of hotel tax revenue on the level of economic growth, there is an influence of motor vehicle tax revenue on the level of economic growth and there is an influence of hotel tax revenue and motor vehicle tax together (simultaneously) on the level of economic growth in DKI Jakarta Province. It is hoped that the results of this research will contribute to further research.

ՀԱՐԿԵՐԻ ԱԶԴԵՑՈՒԹՅՈՒՆԸ ՏՆՏԵՍԱԿԱՆ ԱՃԻ ՎՐԱ ՀՀ-ՈՒՄ / THE IMPACT OF TAXES ON ECONOMIC GROWTH IN THE REPUBLIC OF ARMENIA

Ensuring high and stable economic growth is one of the primary objectives of the state policy in the Republic of Armenia. This objective is indirectly associated with sound fiscal policy, as the implementation of appropriate tax policies tailored to the characteristics of the economic sector's structure, its developmental trends, and the exigencies of the state, fosters stability and long-term sustainability. Such measures serve as key determinants in fostering economic growth. The objective of this article is to examine the structure of economic growth in the Republic of Armenia (RA), to identify the factors facilitating and impeding economic growth in RA, to analyze the composition of tax revenues in RA from the perspective of economic growth, and to assess the impact of RA primary tax categories on economic growth within RA. To achieve this aim, the article delineates the task of scrutinizing the correlation between the economic growth of the Republic of Armenia and its principal tax categories. The research employed empirical methods, including econometric analysis and comparative analysis. A combined methodological approach was adopted during the theoretical phase of the study. The findings of the research indicate a positive correlation between economic growth in the Republic of Armenia (RA) and the expansion of certain tax categories within RA, namely Value Added Tax (VAT), excise tax, profit tax, income tax, and overall tax revenue growth.

Сценарная оценка макроэкономических эффектов прогрессивного налогообложения в России

The purpose of the study is to assess the impact of alternative options of progressive taxation on Russia’s macroeconomic performance. For quantitative assessments, a neoclassical general equilibrium model with heterogeneous households subject to idiosyncratic income shocks was used. Three groups of scenarios were analyzed, setting a threshold progressive tax scale with thresholds of 30, 50, and 70 thousand rubles, under which state income tax revenues (1) grow, (2) remain unchanged, and (3) decline. The maximum personal income tax rate in the analyzed scenarios was 25%. Steady states and transitions were calculated for the scenarios. According to the quantitative estimates, the first reform leads to a loss of 0.3% to 1.3% of GDP in the long run, depending on the assumed rates and threshold. Despite the increase in lump-sum transfers, aggregate household consumption decreases by 0.5–1.7% in all cases. The second reform leads to a loss of 0.2% to 0.6% of GDP in the long run. The third reform leads to insignificant fluctuations of GDP within 0.1%: GDP increases at the threshold of 30 thousand rubles and decreases at other thresholds. The scale of inequality reduction, as measured by the Gini coefficient, increases with an increase in the top tax rate. However, as the threshold increases, the depth of the Gini index reduction first increases and then decreases. In the short run, there is upward pressure on wages and prices. This is because a decrease in labor supply with unchanged capital in the short run leads to an increase in wage rates (a shift along the labor demand curve), and an increase in wage rates means an increase in marginal costs for firms, leading to higher prices.

Fiscal Drag: The Heterogeneous Impact of Inflation on Personal Income Tax Revenue

Fiscal Drag: The Heterogeneous Impact of Inflation on Personal Income Tax Revenue

The Role of Tax Incentives as A Fiscal Stimulus to The Tax Base and Income Tax Revenue Realization

The government's tax incentives can act as a fiscal stimulus to overcome and accelerate national economic recovery by allocating a tax-spending budget. However, it can lead to the impact of losing the tax base and decreasing the income from tax revenues. This study aims to analyze the effect of tax incentives on the tax base and the realization of income tax revenue. The sample comprised 142 taxpayers who applied for tax incentives due to the COVID-19 outbreak at Kantor Pelayanan Pajak (KPP) Pratama Pangkalan Kerinci, Riau, Indonesia, in 2020 and 2021. The data were analyzed using path analysis techniques. The analysis concludes that the tax base can mediate the tax incentive with the realization of income tax revenue, where tax incentives have a direct negative and significant relationship to the realization of income tax revenue through the tax base. If the government increases the value of the tax incentives, it will directly result in a decrease in the realization of income tax revenue due to taxes paid on the tax base. The research findings implicate that providing tax incentives can increase the tax base in several business sectors, such as health services and plantations. Tax incentives can also increase the aggregate utility of the economy, marked by a large consumption of goods or services. Previous researchers have never conducted this research and provided references regarding tax incentive policies and their impact on tax bases and the realization of tax revenues.

The Effect Of Individual Taxpayer Compliance On Article 21 Income Tax Revenue At The Regional Office Of The Directorate General Of Taxes Of North Sumatra I

Indonesia is a developing country with a state goal, namely, to increase the country's development. To realize growth, funds are needed, which come from relatively significant state revenues. The state revenue that makes the most significant contribution is tax sector revenue. Taxes are people's contributions to the state treasury based on law, which can be imposed without receiving direct reciprocal services and are used for general expenses. So, action is needed to increase tax revenues. This research aims to determine the effect of individual taxpayer compliance on income tax revenues under Article 21. The data collection techniques used in this research are documentation and questionnaires. The population in this study was 1,695,904 individual taxpayers registered at the Regional Office of the Directorate General of North Sumatra I. The sampling technique in this research is Non-Probability Sampling, namely Random Sampling using the Slovin formula. The data analysis technique used is a descriptive statistical analysis using SmartPLS-based Partial Least Square (PLS) software. This research indicates that Individual Taxpayer Compliance has a positive and significant effect on Income Tax Revenue Article 21 at the Regional Office of the Directorate General of Taxes, North Sumatra I.

Analisis Kinerja Keuangan Pada Anggaran Pendapatan Dan Belanja Daerah (APBD) Kabupaten Kebumen

Measuring financial performance is very important in assessing the accountability of local governments in managing local finances. The development of government financial performance can affect the community, because the greater the ability of a region to explore regional potential, not only to provide funds for the implementation of governance and regional development, but also to realize maximum services for the community. In analyzing the financial performance of local governments, it can be done by looking at the performance of the Budget Realization Report (LRA). This study aims to analyze the financial performance of the local government of Kebumen Regency in 2017-2021 based on the Ratio of Degrees of Fiscal Decentralization, Regional Financial Dependence, Regional Financial Independence, Effectiveness of Regional Original Revenue and Efficiency of Regional Original Income. The analysis technique used is quantitative descriptive. The data used is secondary data in the form of Kebumen Regency APBD and LRA reports for 2017 – 2021 obtained from the official website of www.djpk.kemenkeu.go.id. The results of this study show the financial performance of the local government of Kebumen Regency in 2017 – 2021 based on the Fiscal Decentralization Degree Ratio with an average of 15.09%, based on the Regional Financial Dependence Ratio with an average of 23.49%, based on the Regional Financial Independence ratio with an average of 64.59%, based on the average Regional Original Revenue Effectiveness ratio of 117%, and based on the Regional Original Revenue Efficiency ratio with an average of 98.87%.

The Role Of Restaurant Taxes On Regional Income Of Cirebon City

Cirebon City is a city located in the eastern part of West Java Province which has great natural, culinary and religious tourism potential. Judging from its tax potential, Cirebon City has quite large restaurant tax potential. This is due to the strategic geographical location of Cirebon City. Cirebon City itself is the trade center for Region III Cirebon, namely Kuningan Regency, Cirebon Regency and Indramayu Regency. Cirebon City Restaurant Tax is regulated in Cirebon City Regional Regulation Number 3 of 2019 concerning the Second Amendment to Cirebon City Regional Regulation Number 3 of 2012 concerning Regional Taxes. The regional regulations explain that Restaurant Tax is a tax levied on every service provided by a restaurant. Restaurant tax is one component of Regional Original Income (PAD) revenue. This research aims to analyze the effectiveness and contribution of Restaurant Tax to local revenue. The method used in this research is a quantitative descriptive method, by analyzing the level of effectiveness and contribution of Cirebon City Restaurant Tax revenue from 2019-2021, using secondary data obtained from pages managed by the Cirebon City Regional Revenue Agency (Bapenda). The research results show that the level of effectiveness of Restaurant Tax revenue fluctuates greatly due to the impact of the Covid-19 pandemic, and the contribution to PAD is still relatively low.

ANALISIS PENGARUH KEGIATAN SOSIALISASI PERPAJAKAN DAN PEMERIKSAAN PAJAK TERHADAP PENERIMAAN PPH PASAL 25/29 WAJIB PAJAK BADAN PADA KPP PRATAMA MEDAN PETISAH

This study aims to find out how to analyze the influence of tax socialization activities and tax audits on income tax revenues article 25/29 for corporate taxpayers at KPP Pratama Medan Petisah. The population in this study is the number of taxpayers who are active and registered at KPP Pratama Medan Petisah from 2015-2022. This study uses primary and secondary data obtained by direct surveys to the field by distributing questionnaires to corporate taxpayers. The data analysis technique used in this study is a descriptive data analysis technique, namely describing and interpreting data according to existing facts.Based on the discussion of the research results obtained, it can be concluded that tax socialization activities at KPP Pratama Medan Petisah partially have a significant positive effect on tax revenues. Tax audit at KPP Pratama Medan Petisah has a significant positive effect on tax revenues. There is a positive influence on the receipt of income tax articles 25/29 for corporate taxpayers. simultaneously tax socialization and tax audit have a positive and significant effect on tax revenues. We can see that the three variables have a positive and significant influence. This means that the more often (positive) tax socialization and tax audit activities are carried out, the income tax revenue article 25/29 will also increase.

Evaluation of corporate income tax rates reduction policy applied to the general equilibrium approach and the degree of self-financing method

The reduction of the corporate income tax rate from 25% to 22% in 2020 is one of the Indonesian government's initiatives to hasten the country's economic recovery in response to the COVID-19 pandemic. In this paper, we aim to evaluate those policies’ impact on other tax revenue policies. According to our estimation using the General Equilibrium approach and the Degree of Self Financing (DSF) method, the measurement results demonstrate that nearly a quarter of 93,8% from the total lost tax revenue resulting from the policy of lowering the corporate income tax rate will be made up for by an increase in other tax revenues in the form of: 17.55 percent of individual income tax revenue, 5.94 percent of VAT, and 0.000197 percent of Tax on Deposits. However, given that only a quarter of 93,8% from the lost corporate income tax revenue will be recovered, the government's decision to keep the corporate income tax rate at 22 percent in 2022 and beyond is still reasonable.

Revenue Of Local Revenue Of Padang City With The Development Of Local Food-Based Culinary Tourism

The purpose of this study was to determine the effect of hotel tax revenue, restaurants, entertainment, tourist attraction levies, billboards, parking and street lighting on the revenue of Padang city's original income partially and simultaneously. Secondary research data sources in the form of panel data collected from library research. The research population is 12 regencies and 9 cities in West Sumatra province. The sample was determined by purposive sampling, namely Padang city. The multiple linear regression equation obtained Y = -897,973 + 7,869X1 + 5,492X2 + 498,735X 3 + 519,704 X 4 + 11,817X 5 + 10,249 X6 + 991,473X7 + e. The results showed that hotel, restaurant, entertainment, tourist attraction levies, billboards, parking and street lighting taxes had a significant positive effect on the PAD revenue of Padang city partially and simultaneously. Keywords - Local Revenue, Culinary Tourism and Local Food

Analysis of the Effectiveness of Income Tax Policy on Trade Transactions via Electronic Systems (E-Commerce) in Efforts to Increase Tax Revenue in 2018-2020 (Case Study at KPP Pratama Jakarta Jatinegara)

According to the Association of Indonesian Internet Service Providers (APJII) in 2019-2020 internet users in Indonesia were 196.71 million people out of a total population of 266.91 million or 73.7% of the total. Along with the soaring use of the internet in Indonesia, this has created an opportunity for many people to do business through the internet (e commerce). This study aims to analyze the effectiveness of income tax policies on trade transactions through electronic systems (e-commerce), along with the inhibiting and driving factors in increasing tax revenues. The author uses the theory of Martani and Lubis (2009:55) quoted in the journal Journal of Governance vol.1. no. 2. 2021. This study uses a qualitative approach with a descriptive method. The data collection techniques used are interview, observation, and documentation methods. From the results of this study, the increase in income tax revenue on trade through electronic systems (e-commerce) cannot be said to be effective. In the realization of e-commerce tax revenue has not been realized optimally. Because not everyone understands the tax on e-commerce transactions and there is no stipulation of a mechanism from several merchants to register, this makes the data not optimally detected. This happens because the data for online business actors is incomplete, the lack of socialization provided, lack of awareness, lack of legal clarity, and efforts that can be made are to be able to carry out socialization on an ongoing basis through online and offline, collaborate with relevant stakeholders in encouraging taxpayers make a TIN, and build awareness in the scope of taxes on e-commerce transaction.

Personal Income Tax and Provisions of Education and Road Infrastructures in Lagos State, Nigeria

Infrastructural provision has been the major point of concern to governments in all states of the federation in Nigeria. Government of Lagos State without exception has been facing serious challenges in provision of infrastructure to Lagosians. The state has been witnessing infrastructural deficit despite huge revenues accruing to the government monthly and this is actually affecting the standard of living of the citizens. Since the advent of civilian government in the state, internally generated revenue has been on the increase, yet the state is still witnessing many infrastructural deficits. This study examined the effect of personal income tax revenue on infrastructural provisions in Lagos state with respect to Education and Road Infrastructures. The study adopted ex-post facto research design. The study covered Personal Income Tax and Infrastructures provisions on Education and Road by the government of Lagos State from 1997 to 2018. Data were obtained from Lagos State Internal Revenue Services (LIRS), Lagos State Ministry of budget and planning and Lagos State Ministry of Finance. The validity of data was premised on the statutory audit of the financial statements by the office of the Auditor General of Lagos State. Data were analyzed using descriptive and inferential statistics. The study found that Personal Income Tax has significant effect on infrastructural provision by the government of the state. On IFED, Adjusted R2 = 0.372, Prob(F-stat) = 4.753, at 5% significance level [β = -0.815; P – value = 0.036]. Also on IFDR, Adjusted R2 = 0.315, F-stat = 3.915, Prob(F-stat) = 0.028), at 5% significance level [β = 0.352; P – value = 0.154]. The study concluded that Personal income tax has impacts that are significant on infrastructural provisions of the state. The study recommended that, government should make it a top priority, the provisions of infrastructures on education to guarantee quality education of the pupils in the state. Also, government should embark on massive road network construction with proper maintenance of the existing ones so as to avoid frequent occurrence of carnage on the roads and government should make more effort to widen the tax net especially among the rural dwellers so that more revenues can be collected as personal income tax in the state.

The Impact of Population Aging on Personal Income Tax Revenue in Vietnam

This paper examines the impact of population aging on personal income tax (PIT) revenue in Vietnam for the period 2014–2030. With the assumptions of a changing tax base and growing real gross domestic product (GDP), the total PIT revenue is projected to increase in absolute terms. However, the projected total PIT revenue as a percentage of GDP under an aging population and the counterfactual results (without aging population) show a negative impact on PIT revenue in the studied period.

An alternative measure of profit shifting and corporate income tax losses

The aim of this paper is to assess an alternative method of estimating the amount of profit shifting and corporate income tax revenue losses. We propose a nonstandard methodology to refine the measurement of profit shifting beyond the traditional semi-elasticity procedure. A four-stage Data Envelopment Analysis (DEA) is used to estimate the relative technical efficiency of profits before taxation reported by foreign-owned companies in Czechia. The efficiency gap resulting from the difference between the first-stage and third-stage technical efficiency scores represents the level of profit shifting. Using the statutory and average effective corporate income tax rates, we calculate the amount of corporate income tax revenue losses attributable to profit shifting. The estimated mean level of profit shifting by foreign subsidiaries involved in the manufacturing and service sectors between 2009 and 2016 is over 570 million EUR, and the mean amount of tax losses exceeds 100 million EUR. In relative terms, profit shifting leads to a decrease in total corporate income tax revenues of 2% in Czechia. Foreign-owned companies involved in the manufacturing sector are less efficient than foreign-owned companies from services industries in terms of relative technical efficiency scores, while companies involved in the service sector have a considerably high efficiency gap with respect to companies involved in the manufacturing sector.

Modi Industries Ltd. vs. Commissioner of Income Tax

Modi Industries Ltd. V. Commissioner of Income Tax (2012) is a landmark case in Indian corporate law. The case involved a dispute between Modi Industries Ltd. and the Commissioner of Income Tax over the taxability of the company’s income from the sale of carbon credits. The company Modi Industries Ltd. is engaged in the manufacture and sale of steel products. The company had invested in projects to reduce carbon emissions and had obtained carbon credits under the Clean Development Mechanism (CDM) of the United Nations Framework Convention on Climate Change (UNFCCC). Modi Industries Ltd. argued that the income was not taxable because it was a capital receipt and not a revenue receipt. On the other hand, the Commissioner of Income Tax argued that the income was taxable as revenue income. The case was filed to resolve this dispute and determine whether income from the sale of carbon credits is subject to taxation.