Income Tax Revenue Research Articles

Analisis Implementasi Kebijakan Insentif Pajak Penghasilan Pasal 21 Ditanggung Pemerintah Di Masa Pandemi Covid-19 Pada Kpp Pratama Jakarta Pademangan Tahun 2020

The outbreak of Corona Virus Disease 2019 (Covid-19) in Indonesia has had a significant impact on various sectors, one of which is the economy, such as the large number of layoffs and companies that are threatened tostop operating. In order to improve the people’s economy and restore the national economy, the government issued an Article-21 income tax incentive policy. The purpose of this study was to determine the implementation of the Article-21 Income Tax Incentive, the obstacles in the implementation of the incentive policy and the efforts made to overcome these obstacles. The research method used is descriptive qualitative method. The data sources consist of primary data in the form of interviews and secondary data in the form of tax revenue data, Article-21 Income Tax Revenue data, data on taxpayers who apply for Article-21 Income Tax Incentives, and data on taxpayers receiving Article-21 Income Tax Incentives. The results of this studyindicate that the implementation of Article 21 income tax incentive policy is running well, but there are still problems in communication and disposition. In terms of communication, the role of taxpayers is still less active, while in terms of disposition, supervision of taxpayers is also still lacking. Efforts that must be taken to overcome the existing obstacles are for tax officials to continue to communicate and improve supervision to prevent the possibility offraud.

APAKAH EKSTENSIFIKASI PAJAK, PEMERIKSAAN PAJAK, DAN SANKSI PAJAK DAPAT MENINGKATKAN PENERIMAAN PAJAK ?

The outbreak of the Covid-19 virus has a negative impact on state tax revenue. MSMEs are the sector most affected by the pandemic by declining turnover and income. This study aims to analyze the effect of tax extensification and tax audits on income tax revenues of MSME actors in Semarang City during the Covid-19 pandemic. The research sample consisted of 46 monthly observations for MSME actors in the East Semarang area. The analysis was performed using multiple linear regression analysis. The results showed that tax extensification and tax audits had a positive effect on income tax revenue for MSME actors. Meanwhile, tax sanctions have a negative effect on the income tax receipts of MSME players in Semarang City during the Covid-19 pandemic.

Zucchini (Cucurbita pepo L.) Cultivation in India: A Review

Background: Zucchini (Cucurbita pepo L.) belong to the family Cucurbitaceae and is an exotic crop grown in both open field and protected conditions. It is recently been popularized in India due to yield and health benefits and grown in various climatic and soil conditions. Methods: This crop is raised initially in polybags in Jorhat and Darrang of Assam and then transplanted in polythene mulched field conditions. It is grown from March-April in mild summers of North India and grows from September to December in lower hills or plains according to package of practice. Result: Various location specific spacing and fertilizers are incorporated in this crop and growth regulators like Ethrel are incorporated to promote the number of female flowers. This crop can provide huge income revenue if exported in near future.

A full-fledged analytical model for the Laffer curve in personal income taxation

The standard approach to evaluate the Laffer curve of personal income taxation focuses on the impact on income tax revenue alone. However, this is an incomplete depiction of reality, as income tax rate changes also affect revenue collection from other taxes -i.e. consumption taxes and social security contributions. In addition, to the extent that administration and compliance costs correlate with tax rates, the Laffer curve should also consider this correlation. This paper develops a complete microeconomic model for the Laffer curve of personal income tax, taking into account all these omissions. Results confirm that these omissions generate the false illusion of a Laffer curve with a higher-than-real revenue maximum and a narrower prohibitive zone than exists in reality.

Company income tax revenue and economic growth: empirical evidence from Sub-Sahara countries in Africa

The development level of any country depends on the volume of revenue realised for the infrastructureprovisions. For decades ago, local resource mobilization issue has enticed significant attention inSub-Sahara countries in Africa due to paucity of income generated. The aim of this study is to examinethe effect of CIT revenue on the growth of Sub-Sahara counties in Africa. Data from ten Sub-Saharacountries which comprised of Nigeria, Liberia, Sierra Leon, Ghana, South Africa, Senegal, Benin, Burkina-Faso, Guinea and Mali were employed from year 2000 to 2019. However, the data were sourcedmajorly from World Development Indicator (WDI) and analyzed using Panel data analysis and ARDL.Based on our findings, the Coefficients of all the variables, especially CIT are negative and insignificant,this goes to validate the speed of adjustment of 1.8% (coefficient of -1.86124), meaning that 1% changein CIT absolutely bring down GDP by 1.8% in the long run but in the short run, 1% change in CIT logicallybring down GDP by 0.5% (coefficient of 0.596384). Conclusively, company income tax revenuenegatively affected the growth of Sub-Sahara countries in Africa over the period of study both in the shortand long run. It is recommended that fiscal authorities of respective countries should create databasemechanism which will expose annual chargeable profit and tax payable for each company in order toeschew CIT evasion in the country. Regulatory authorities saddled with the monopolistic responsibilityof tax collection should be empowered to impose compliance on CIT payers which will upsurge CITrevenue enormously. Lastly, CIT tax collected should be appropriately dispersed to breed growth ofeconomy for effective compliance of taxpayers.Key words: Sub-Sahara, Countries, CIT, Growth, ARDL, Revenue.

Impacts of Taxation on Economic Development in Nigeria

The study investigated the impact of company's income tax revenue, education tax revenue, and petroleum profit tax revenue on health, education and standard of living respectively in Nigeria from 2000 to 2020. The study test the unit roots of the variables by using Augmented Dickey Fuller and found out that all variables involved are stable at level and first difference. The study used Bound Co-integration test and ARDL – Autoregressive Distributed Lag to estimate its three models. The results are as follows: in model 2a with life expectancy at birth as dependent variable, there exist a negative relationship between company income tax revenue/education tax revenue and life expectancy at birth (LEXB), and there exist a positive relationship between petroleum profit tax revenue and life expectancy at birth (LEXB) within the periods of study; while in model 2b with student enrolment at tertiary level as dependent variable, there exists a positive relationship between company income tax revenue and school enrolment at tertiary level (SET), there exists a negative relationship between education tax revenue and school enrolment at tertiary level (SET) within the periods of study, and there exists a positive/significant relationship between petroleum profit tax revenue and school enrolment at tertiary level (SET) within the period of study; finally in model 2c with per capita gross national income as dependent variable, there exist a negative relationship between company income tax revenue in current year and one year lag respectively and per capita gross national income (PCGNI), there exist a positive relationship between education tax revenue and per capita gross national income (proxy for standard of living), and there exist a positive relationship between petroleum profit tax revenue and per capita gross national income (PCGNI) within the periods of study. The study therefore recommends that company income tax revenue, education tax revenue and petroleum profit tax revenue respectively are very useful while formulating and implementing decisions on health, education and standard of living in Nigeria.

PENGARUH KEPATUHAN WAJIB PAJAK, PEMERIKSAAN PAJAK, DAN PENAGIHAN PAJAK TERHADAP PENERIMAAN PAJAK PENGHASILAN BADAN (STUDI KASUS DI KPP PRATAMA PATI TAHUN 2016-2019)

This study aims to analyze the effect of corporate income tax receipts. The independent variables include taxpayer compliance, tax audit, and tax collection. This study uses primary data derived from questionnaires. The population in this study were companies registered with KPP Pratama Pati for the period 2016–2019 that had NPWP. The sampling technique used is purposive sampling and the number of samples is 100 data. The data analysis method used multiple linear regression. The results of this study indicate that taxpayer compliance has a positive effect on corporate income tax receipts, tax audits have a positive effect on corporate income tax revenues, and tax collection has a positive effect on corporate income tax revenues. Taxpayer compliance, tax audit, and tax collection simultaneously have a positive effect on corporate income tax receipts.Keywords: Taxpayer Compliance, Tax Audit, Tax Collection, Corporate Income Tax Receipt.

Financial disincentives to formal employment and tax-benefit systems in Latin America

The aim of this paper is twofold. First, it provides a comprehensive assessment of the financial disincentives to enter formal employment implied by the design of the tax-benefit system in five Latin American countries: Bolivia, Colombia, Ecuador, Peru, and Venezuela. Then, it analyzes the extent to which formalizing informal workers would contribute to increase fiscal capacity in the region. The results show a wide variation in financial disincentives to enter formal employment, with formalization tax rates ranging between 8.5 percent in Venezuela and 42 percent in Colombia. Formalization tax rates are particularly high for self-employed informal workers, and mainly driven by the high costs associated with social insurance contributions. The analysis further shows that potential entries to formal employment would raise tax revenue in all countries, but mainly through the effect of increased social insurance contributions, whereas personal income tax revenue would have a marginal contribution, except in Bolivia and Venezuela. Interestingly, potential formalization of informal workers with the highest probability of being formal would allow capturing a substantial share of the additional tax revenue lost due to informality.

Drivers of financial well-being in socio-economic deprived populations

This paper draws on qualitative and quantitative data from social housing tenants in Ireland, exploring how the subjective experience of financial well-being can be understood, and correlating this experience to behavioural and contextual factors. The findings suggest that despite working within tight budgeting constraints, residents are self-disciplined in living within their means, put aside money for unplanned expenditure, and “do without” when money runs out. Residents are using mobile phones predominantly to shop and check bank balances, with online banking used to access traditional payment instruments (e.g. Direct Debits) for fixed outgoings, to receive incoming revenue and to save. There is little evidence that residents get value from personal finance management tools. Instead, we conclude that financial well-being is a set of behaviours, necessitating self-discipline and control to avoid unsustainable indebtedness. The design of financial services should take the lived experience of citizens into account, in particular promoting resilience through savings instead of credit.

Pengaruh Jumlah Angkatan Kerja dan Investasi terhadap Pendapatan Asli Daerah

The purpose of this study is to analyze the effect of the number of labor force and investment on Regional Original Income Revenue (PAD). Provincial PAD in Indonesia has different figures for each province. Every year the PAD figure fluctuates and forms a certain pattern for each province. The number of labor force and investment is estimated to affect the amount of PAD figure. The research used data from 34 provinces in Indonesia taken from the Central Statistics Agency in 2020, and analyzed using the multiple linear regression method. The results found that the number of labor force and investment had a significant and positive effect on PAD. Based on the analysis of determination, it is found that the number of labor force and investment has a relatively large contribution to explain fluctuations in PAD, although there are still a number of other independent variables that are not included in this research model.

Which States Support Which Ones? Predicting Federal Flow Through From the Feds to the States

While politicians in Washington, who have already authorized trillions of funds for businesses in the past 3 years, have been arguing over allocating funds for state and local governments, there have been a number of suggestions that stimulus packages potentially benefit certain states at the expense to others. The arguments primarily appear to come down to politics – “red,” Republican-led states versus “blue,” Democratically-led states. The insinuation is that that the “blue” states are more poorly run than the red states and that the better run “red” states should not be “bailing out” poorly run “blue” states. A linear regression model was developed that perfectly predicted both federal fund recipients and “red” or “blue” designations. Correlation and principal component analysis was run to determine the factors that were the best predictors. The truth appears to be as Governor Cuomo states, “blue” states are better run, better funded and are more productive than “red” states when measuring gross domestic product, income and net tax revenue per person. Educational funding was a major reason “blue” states were ahead of their “red” neighbors.

Evaluating Effectiveness of Low-Carbon Transition Policy Mix Based on Urban Private Car Trajectory Data

Under the vision of achieving carbon neutrality by 2060, it is urgent to introduce appropriate carbon reduction policy for city road traffic. This paper establishes a three-layer neural network model to predict the carbon emission from private cars based on urban private car trajectory data, simulates and analyzes the carbon emission from private cars, travel cost, personal income, and government revenue under the four policy perspectives, and evaluates and compares the emission reduction effects under four policy perspectives. Next, this paper evaluates the government revenue from the perspective of carbon tax and policy mix and compares the individual consumer utility of two-commodity and three-commodity mix, as well as the total social benefits under the four policy perspectives. The results show that the policy mix has better implementation effect on carbon emission reduction, personal income, and travel cost. The implementation effect of the single carbon tax policy is better in terms of government revenue. The implementation effect of the single carbon trading policy is better in terms of social benefit. In addition, as the carbon tax rate increases, the consumer utility tends to decline. Finally, this paper puts forward specific policy implementation proposals based on the above simulation analysis.

Fiscal Sustainability: Public Revenue-Expenditure Nexus in a Few Asymmetric Countries in the Globe

This article examines the public revenue and expenditure patterns and its nexus of a few countries. This paper employs panel unit root, panel cointegration and Vector Error Correction Model to analyze the inter-temporal association among the variables of government revenues, expenditures and the growth of GDP through the panel data of ten divergent nations over the period 2001 to 2017. The study exercised three cointegration tests and these estimates find the evidence of long run association among articulated three variables. To know the cross-section status of different nations this paper diverted Phillips-Peron test with bandwidth statistics and it asserted that, all ten countries secured the long run association among the variables. The study uncovered that, growth of GDP has escalated in 0.78% by one percentage increase in revenue expenditure; meanwhile, 1.41% lessening in GDP growth by one percentage increase in revenue income. The specified model is supported by a few diagnostic tests.

What is the Impact of COVID-19 on Foreign Tourist Arrivals (FTAS) in India from Top Fifteen Source Countries during 2019 & 2020- A Cross Sectional Study?

Due to novel disease, poor management and stringent steps taken by the government as well as sudden increase in admissions at emergency department of hospitals the mortality rate had increased significantly due to COVID-19. Such a catastrophic situation might have reduced the foreign tourist arrivals in India due to several factors like fear, lack of transportation etc. In this modern era geographical knowledge of pattern of distribution of disease is essential while detecting, surveillance, monitoring and responding to any communicable infectious disease outbreak or NCD (non-communicable diseases) or any pandemic situations. Geospatial data of COVID-19 infections per million population reported by countries, territories and areas are under surveillance by national and international agencies such as World Health Organization in various countries. This paper is to find out the impact of COVID-19 on Foreign Tourist Arrivals (FTAs) in India from top 15 Source Countries during 2019 &2020 with aim to assess the impact of COVID-19 pandemic era (2020 as discussed above) by comparing it with pre-pandemic era of 2019. To assess the impact of COVID-19 on Foreign Tourist Arrivals number and percentage share of tourists coming to India during pandemic era-2020 and pre-pandemic era 2019 were compared. The total numbers of FTAs in India during 2019 from all source countries were 10930355 which reduced to 2744766 during COVID-19 PANDEMIC ERA in 2020; a massive decline by 8185589 numbers of tourists and 25.11percent compared to pre-pandemic era of 2019. On the other hand the total numbers of FTAs in India during 2019 from Total Top 15 Countries were 8340551 which decreased to 2061161 during COVID-19 PANDEMIC ERA in 2020; a huge decline by 6279390 numbers of tourists and 24.71percent compared to pre-pandemic era of 2019 while FTAs in India during 2019 from Other Countries were 2589804 reduced to 683605 during Covid-era 2020 (26.40% decrease). Tourism is one of the significant resources to generate foreign revenue for India. COVID-19 pandemic era, have affected the tourism sector negatively and this novel research study revealed that the national and international FTAs and revenue income are adversely affected detrimental for Tourism industry. The COVID-19 induced lockdown had resulted in closure of hotels; resorts etc., as well as ships, cruises, flights had been halted to check the spread of the COVID-19 pandemic which has resulted in revenue loss of 1.25 trillion rupees for the Indian tourism industry by 2020.

Wrażliwość budżetów publicznych i prywatnych na kryzys spowodowany pandemią COVID-19 na przykładzie polskiej gospodarki

Purpose – To demonstrate the interdependence and assess the sensitivity of private and public budgets to the crisis caused by the COVID-19 pandemic. Research method – The method of quantitative and qualitative analysis of statistical data on household budgets, corporate finances and state and local government budgets was applied. The strength of the impact of the crisis was assessed on the basis of the difference in the dynamics of variables characterising budgets after the first year of the crisis compared to the year before the crisis. Results – Pandemic crisis has put greater strain on public budgets. Personal income tax revenues are the most sensitive to the crisis. Public budgets show a larger negative difference in revenue dynamics during the crisis than private budgets. The burden on the state budget consists of lower tax revenues and discretionary fiscal policy during the crisis. The strong impact of the behavioural factor is demonstrated by the significant increase in the dynamics of household savings. Originality/value/implications/recommendations – The article presents the author’s assessment of the distribution of the burden of the effects of the crisis between public and private budgets.

Employment Structure and the Rise of the Modern Tax System

This paper studies how the transition from self-employment to employee-jobs over the long run of development explains growth in income tax capacity. I construct a new database which covers 100 household surveys across countries at different income levels and 140 years of historical data within the US (1870-2010). Using these data, I first establish four new stylized facts: 1) within country, the share of employees increases over the income distribution, and increases at all levels of income as a country develops; 2) the income tax exemption threshold moves down the income distribution as a country develops, tracking employee growth; 3) the employee share above the tax exemption threshold is maximized and remains constantly high; 4) movements in the tax exemption threshold account for the observed variation in tax collection across development. These findings are consistent with a model where a high employee share is a necessary condition for effective taxation and where the rise in income covered by information trails through increases in employee shares drives expansion of the income tax base. To provide a causal estimate of the impact of employee share on the exemption threshold, I study a state-led US development program implemented in the 1950s-60s which shifted up the level of employee share. The identification strategy exploits within-state changes in court-litigation status which generates quasi-experimental variation in the effective implementation date of the program. I find that the exogenous increase in employee share is associated with an expansion of the state income tax base and an increase in state income tax revenue.

Taxation of agricultural incomes in Pakistan: Conceptual issues, data challenges and empirical estimates

There is considerable diversity and variation in the land-based and agricultural income tax rates across the provinces in Pakistan. The annual land-based tax revenues from the cultivated land, including orchards, are estimated at Rs. 5 billion in Punjab, 2.5 billion in Sindh, one billion in KP, and less than half a billion in Baluchistan. Based on the 2017-18 GDP estimates from crops, two sets of income tax revenues were estimated: one at the provincial rates and the other at the FBR tax rates for non-salaried persons. Tax revenues from crop income, at the current provincial rates, work out to Rs. 34 to 37 billion in Punjab, 7 to 8 billion in Sindh, 7 to 9 billion in KP, and 4 to 5 billion in Baluchistan. Revenue estimates at the FBR rates are Rs. 112 to 134 billion in Punjab, 25 to 30 billion in Sindh, 9 to 10 billion in KP and 21 to 24 billion in Baluchistan. These estimates are indicative of the revenue potential from taxation of crop incomes and need to be kept in perspective along with the cost of tax collection while designing policy instruments for taxing agricultural incomes.

Регионы России в новых экономических условиях

In the first three months of the sanctions’ crisis, regions connected with the global market were hit harder: these are the exporters of oil, gas, metals, and regions of the manufacturing industries with a high share of imported components. The influence of specialization has increased; in industry the decline is stronger in the regions of the automotive industry, oil and gas production, ferrous metallurgy. The decline in retail sales is stronger in the agglomerations of the largest cities due to the departure of foreign companies and in some regions with low incomes, where the population is faster reducing consumption. The decline or stagnation of personal income tax revenues in May 2022 manifested in the regions of the fuel complex, metallurgy, in some depressed regions and in underdeveloped Republics, where the share of shadow business may increase. The risks of part-time employment are higher in the industrial regions of the Center, the Volga district and part of the Urals. The employment reduction risks in the market services are higher in agglomerations and other major cities, in part of the depressed regions; in resort regions they are mitigated by increased home tourism. The risks of regional budgets tax revenues decline are strongest in more developed and export-oriented regions. The Southern agrarian regions and the Far East (with the exception of Sakhalin) are going through the crisis more mildly due to the home demand for food products and its exports, and for the Far Eastern regions — due to orientation to the Asian markets, especially China. Moscow is likely to go through a new crisis, like the two previous ones, softer than other regions, especially in terms of the dynamics of household incomes and the budget revenues.

Determinants of the Proportional Income Tax Revenue: A Comparative Assessment of Russia and Bulgaria

Initially flat-rate income taxes only existed in tax havens, but presently, 26 countries have adopted the proportional tax as a fiscal instrument to increase budget revenues and accelerate economic growth. This article empirically examines the determinants affecting the revenues from a proportional income tax with non-taxable minimum (negative flat tax) used in Russia and a proportional income tax without non-taxable minimum (pure flat tax) used in Bulgaria. The research objective is to estimate the impact of the macroeconomic variables such as gross disposable income, employment, gross capital formation and government expenditures on the revenue from the proportional income tax in Russia and Bulgaria. The study employs an ordinary least square (OLS) method and quarterly seasonally adjusted data for the period 2008–2020. For Russia, quarterly seasonally adjusted data for the period from March 2008 till December 2020 were used, including 52 observations. For Bulgaria, quarterly seasonally adjusted data for the period from March 2008 till March 2020 were used, including 49 observations. Basing on the results, it may be inferred that the increase of the gross disposable income and higher marginal tax rate of the proportional tax with a non-taxable minimum collect more nominal revenue in the budget, as Russia’s example showed. The increase of the employment related with a lower marginal tax rate of the proportional income tax without a non-taxable minimum collect less nominal revenue as Bulgaria’s example shows. A standpoint of the revenue in the budget the proportional income tax with non-taxable minimum is more effective than proportional income tax without non-taxable minimum.

Taxation-Based Indicators as a Measure of Income Inequality in Russian Regions

Russia is one of the most unequal of the world’s major economies, with its wealth and income inequalities having drastically increased in recent years. This study aims to describe the influence of the flat personal income tax on income inequality in Russia and its regional characteristics by analyzing per capita tax revenues. The hypothesis is that the system of income taxation that existed in Russia until 2021 did not help reduce income inequality but on the contrary, exacerbated it, which is particularly evident on the regional level. Methodologically, the article relies on statistical analysis of concentration indices, time series analysis, index method, and comparative analysis. The calculations were made with the help of the Analysis ToolPack in MS Excel by using the data on 85 Russian regions. To test the hypothesis, 7 indicators were calculated: the range of variation, standard deviation, coefficient of variation, decile ratio of funds, decile ratio of differentiation, quintile ratio of funds, and the Gini index for 85 Russian regions for the period from 2006 to 2020. In the given period, these indicators remained steadily at a high level with a slight decrease in 2008–2010. Judging by the dynamics of the Gini index calculated by Rosstat, income inequality tended to decline although there were no significant changes in the regional differences in income while regional inequality also remained high. Monetary income and gross regional product are distributed more evenly across Russian regions in comparison with the personal income tax revenues and tax revenues in general of the regional governments’ consolidated budgets. The findings confirm the hypothesis and show that the personal income tax, which is an essential element of the tax system, exacerbated the situation of inequality in Russian regions. These findings can be of use to policy-makers and contribute to further research on taxation instruments and their potential to reduce or mitigate inequality.