Publicly-funded Services Research Articles

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.

Globalization and taxation: Implications on national tax policies and international tax competition

This review examines the profound impact of globalization on national tax policies and the ensuing tax competition among countries. Globalization, characterized by increased economic integration and cross-border capital and labor mobility, has significantly influenced national tax structures and policies. Countries are compelled to adapt their tax systems to remain competitive in attracting and retaining investments, leading to a shift from traditional income taxes to consumption-based taxes and adjustments in corporate tax rates. This competition often results in a "race to the bottom," where countries continuously lower tax rates to outbid each other, thereby affecting government revenues and public service funding. The review explores how globalization erodes traditional tax bases, creating challenges for national policymakers who must balance the need for competitiveness with revenue requirements and equity considerations. Through case studies, the effects of tax competition are analyzed, highlighting the outcomes of various national strategies in attracting global capital. Additionally, the role of international tax treaties and agreements in shaping global taxation dynamics is scrutinized. Treaties aimed at avoiding double taxation and preventing tax evasion, such as those orchestrated by the OECD’s Base Erosion and Profit Shifting (BEPS) initiative, and EU tax policies, are pivotal in harmonizing tax rules and reducing tax arbitrage opportunities. These agreements foster international cooperation, attempting to create a more stable and fair global tax environment. The interaction between national tax policies and global agreements is complex, involving coordination and occasional conflict. The effectiveness of these international efforts in addressing the challenges posed by globalization is assessed, considering both successes and limitations. Emerging trends, such as the taxation of the digital economy and the increasing involvement of developing countries in global tax discussions, are also explored. The review provides insights into the dynamic interplay between globalization and taxation, offering recommendations for policymakers to navigate the intricate global tax landscape. Future challenges and opportunities are discussed, emphasizing the need for continued international cooperation and adaptive national policies. Keywords: Globalization, National Tax Policies, Tax Competition.

The energy transition and local government finance: new data and insights from 10 US states

Fossil fuels are the primary contributor to global climate change, and efforts to reach net-zero emissions will require a dramatic curtailment of their extraction and use. However, fossil fuels fund public services at all levels of government, and research has not assessed whether clean energy sources can provide similar scales of revenue. In this paper, we analyze a novel dataset that we have assembled on how fossil fuels and renewable energy contribute to local governments in 79 US counties across 10 states. Revenues from fossil fuels far outweigh renewables in aggregate terms, providing more than $1000 per capita annually in dozens of counties. However, wind and solar in some states generate more local public revenue than fossil fuels per unit of primary energy production. In most counties that depend heavily on fossil fuels for local revenues, solar—but not wind—has the technical potential to replace existing fossil fuel revenues, but this would require dedicating implausibly large portions of developable land (in some cases, more than half) to solar. For counties with less reliance on fossil fuels, wind and solar can more plausibly replace fossil fuel revenue streams. This finding suggests that while renewable energy will provide new revenue streams for communities, fossil fuel–dependent regions will need to build new tax bases well beyond wind and solar, develop other sources of revenue, or risk a decline in public service provision.

Zakat vs Tax: A Maqasid Sharia Perspective

This study explores the comparison between zakat and tax within the framework of maqasid sharia perspective. Specifically, this study compares zakat and tax in terms of how effectively each system fulfills the objectives (maqasid ) of sharia such as hifz al-mal (protection of wealth), islah (rectification), hifz al-nafs (salvation of the soul), and 'adl (social justice). It aims to evaluate the extent of the impact of zakat and tax implementation on wealth distribution, poverty elimination, and the establishment of a just economic structure. Through a comprehensive analytical approach, this study evaluates the contribution of each instrument towards the realization of these objectives. A qualitative approach and a thematic literature review is adopted to explore evidences related to zakat vs tax from a maqasid sharia perspective. The result shows that zakat proves to be an effective tool in supporting equitable wealth distribution and social safety, while taxes provide consistent funding for public services. However, challenges such as compliance, transparency and fairness remain a critical focus. This research provides important insights into how the implementation of zakat and tax can be optimized to achieve the desired balance within the maqasid sharia framework.

Effect of Moral Obligation on Sales Tax Compliance among SME Taxpayers in Juba, South Sudan

Tax compliance promotes social and economic growth by reducing the government's fiscal imbalance and debt while also providing funding for public services. Currently, the National Revenue Authority of South Sudan is focusing on maximizing tax revenue production from the country's huge number of small and medium enterprises, and this study contributes to that endeavour. The study's main goal was to examine the moral obligation, of sales tax compliance among SMEs. This study was guided by Tax Morale Theory. The study used an explanatory research design and the study's target population was 1,320 SMEs, with 307 SMEs in Rejaf Sub-County registered for sales tax. The data was examined using both descriptive and inferential statistics. The study found that there is a positive and significant effect of moral obligation on sales tax compliance (β1 =0.241, p<0.05), The study recommends that South Sudan's Ministry of Finance and Economic Planning build a strong mechanism for monitoring and evaluating the efficiency of tax policy implementation. Furthermore, research should involve a more diversified set of SMEs to capture a greater variety of opinions, taking into account differences in size, industry, and ownership structure.

Factors Influencing E-Filing Usage Among Pakistani Taxpayers

Tax collection is an essential and significant source of income for developed and developing nations. Tax income is crucial since it serves as the primary financial resource for funding public goods and services, promoting democracy, ensuring sustainable economic growth, and enhancing the well-being of individuals. Following its adoption, this study investigates the impact of tax knowledge on individuals' desire to utilize the electronic filing system for sales tax returns in Pakistan. The study examines the aspects that influence a taxpayer's inclination to operate the electronic filing system, using the theoretical frameworks of the TAM model, the TPB, and the notion of tax knowledge. The results affirm the need for the Federal Board of Revenue (FBR) to develop a more efficient strategy for promoting the adoption of electronic filing among taxpayers in Pakistan.

Exploring minimal indirect digital economy taxation as a post-COVID-19 economic recovery strategy for African revenue mobilisation

The COVID-19 pandemic and its aftermath continue to devastate most areas of society and continue to reveal inherent structural vulnerabilities in the economies, social, and health systems in countries. In addition, the Russia-Ukraine conflict of 2022 and the geopolitics of its resolution continue to create shocks across the globe- evidenced by rising inflation, increased sovereign debt level, recession, and reduced public expenditure among others. While many sectors of the economy were crippled by the back-to-back global economic shocks of the Covid-19 pandemic and the Russia-Ukraine conflict through reduced economic activities resulting in a global recession and reduced tax revenues for public expenditure, the digital economy has surprisingly boomed and continues to grow in this period of uncertainty. This has been directly attributed to the 'lure of the alternative', caused by the social and economic lockdowns imposed by countries, which pushed many persons and companies to explore the next available option- online platforms to conduct business. Although the rise in the use of digital platforms for business activities is commendable, this development has some implications for traditional business frameworks which in turn affects revenue mobilisation for funding public infrastructure projects and services. This is because, in Africa, the digital economy is not as well-regulated as the traditional economy. This creates an avenue for tax evasion and avoidance, arising from the dynamic and complex nature of digital transactions. This challenge requires that urgent solutions be found for the effective taxation of the digital economy. There will be a need to review/reform economic and fiscal policies and laws to ensure a faster recovery from the economic effects of the COVID-19 pandemic. There would also be a need to create digital tax policies that are equitable for source and market jurisdictions and, lastly, there will be a need for cooperation in tax law and policies across Africa that capture the reality of the growth and ubiquitous presence of digital multinationals in Africa.

Is GRDP a mediating factor in enhancing local tax revenues due to ICT development in Indonesia?

Purpose: This study aims to investigate whether the Gross Regional Domestic Product (GRDP) of the information and communication sector mediates the relationship between Information and Communication Technology (ICT) development and local tax revenue enhancement across districts and municipalities in Indonesia. Design/Methodology/Approach: This study uses a quantitative approach to examine how ICT growth, access, infrastructure and utilization affect local taxes and regional levies using panel data from 2017 to 2021.The GRDP of the information and communication sector is incorporated as a crucial moderating variable. Findings: The findings reveal that the GRDP of the information and communication sector plays a vital moderating role in the relationships between ICT factors and local taxes and levies. ICT development benefits local tax systems through increased efficiency, transparency, reduced disparities and enhanced accessibility. Effective ICT infrastructure enables digital fiscal transactions, increasing revenues while improving collection efficiency and reducing income disparities among provinces. High ICT utilization supported by technological proficiency enables local governments to enhance local taxes and levies. Practical Implications: An increase in the GRDP of the information and communication sector leads to higher tax revenues for local governments, funding public services and infrastructure development. Additionally, it attracts investments from other sectors, boosting regional levies and promoting overall regional economic development. The study highlights leveraging the GRDP of this sector as a strategic factor to enhance local tax revenue and regional levies across Indonesian provinces contributing to fiscal decentralization efforts.

Tax Administration and Financial Performance of Manufacturing Firms in Kenya: A literature Review

This study explores the impact of tax administration practices on the financial performance of manufacturing firms in Kenya. The manufacturing sector is crucial for economic growth and job creation, making it essential to understand how tax policies affect its performance. Tax administration encompasses procedures and policies governing tax compliance, which have evolved over time. Effective tax administration is vital for economic stability and funding public services. However, inefficient practices can hinder firm productivity and growth. Drawing on tax planning theory and agency theory, this study examines how firms strategically manage tax liabilities and navigate principal-agent relationships to optimize financial performance. The empirical review highlights findings from previous studies on the relationship between tax administration practices and firm performance in Kenya. These studies underscore the importance of tax incentives, compliance costs, and governance mechanisms in shaping firm behavior and economic outcomes. By understanding the nuances of tax administration practices, policymakers and firms can implement strategies to enhance economic stability and growth in the manufacturing sector.

If it is Possible to be Non-Compliant: Why Should it be Compliant?

This study examines how people’s moral and ethical behavior influences tax compliance. The research involved interviews with four taxpayers in East Nusa Tenggara Province. Taxes play a crucial role in funding public services, and their proper collection is vital for community welfare. The study suggests that more than a robust tax system is needed; incorporating moral and cultural values is essential to encourage compliance. The findings reveal that taxpayers adhere to tax obligations not just because of the system but also due to a sense of responsibility for their business sustainability.

Innovative Approaches in Tax Enforcement and Tax Compliance for Sustainable Economic Development in Nigeria; A Conceptual Review

This paper delves into a conceptual review of the vital role of innovative approaches in tax enforcement and compliance for achieving sustainable economic development in Nigeria. Amidst evolving global economic landscapes, the integration of cutting-edge technologies such as blockchain, data analytics, digital platforms, and real-time reporting has emerged as a powerful catalyst for transforming the nation's tax system. These innovations have significantly streamlined tax processes, facilitating easier tax compliance for individuals and businesses. They have also fostered transparency and trust within the tax system by ensuring secure and tamper-proof tax records and enhancing voluntary compliance. The implementation of these innovative strategies presents a unique opportunity to bolster Nigeria's revenue collection, thereby contributing to sustainable economic development by funding critical public services, infrastructure projects, and socio-economic development initiatives. The paper concludes that the adoption of innovative approaches in tax enforcement is pivotal for sustainable economic development in Nigeria. By promoting compliance and transparency, these technologies contribute to a robust and reliable revenue base essential for funding public services and infrastructure projects. This paper, therefore, recommends investment in digital Infrastructure, implementation of real-time reporting and data analytics, utilisation of data analytics and artificial intelligence and leverage on mobile payment systems.

Implementing health system and the new federalism in Somalia: challenges and opportunities.

In the 21st century, healthcare stands out as a formidable, contentious social responsibility for governments due to its high costs. This study delves into Somalia's healthcare system under Federal Government leadership, scrutinizing the complexities of health governance and financing. The Federal Government (FGS), along with governmental states (FMS) and regional authorities, collectively shoulder leadership and governance roles within Somalia's healthcare framework. Vital to resilient and inclusive development, the health sector holds a pivotal role. A strategic investment in healthcare not only drives substantial demographic dividends through enhanced life expectancy and reduced fertility rates, but also paves Somalia's trajectory toward progress. The Federal Government of Somalia confronts a multitude of challenges in its pursuit of effective healthcare implementation. A prominent obstacle lies in health financing. Somalia relies heavily on international and private sources for health support, primarily due to limited government revenue generation. This financial shortfall restrains the government's capacity to allocate ample funds for public services and critical investments, including healthcare. This paper sheds light on the present healthcare landscape in Somalia and expounds on the hurdles confronted by healthcare systems under federal governance. Moreover, it delves into the historical evolution of Somalia's healthcare system and the advent of new federalist principles. In doing so, this study comprehensively examines the dynamics of healthcare governance, financing, and historical progression in Somalia.

Patterns of Social Determinants of Health and Publicly-Funded Service Access among Children Involved in Educational, Child Welfare, and Social Service Systems.

Social determinants of health (SDOH)-conditions in which children live, learn, and play-affect child health and well-being. Publicly funded services in education and child welfare systems are important resources to support child well-being, but cross-system coordination is rare. Leveraging integrated administrative data from 60,287 6th graders enrolled in public schools in Minnesota, we used latent class analysis (LCA) to examine patterns of cross-system SDOH, including educational services and involvement in child welfare. Five classes emerged. The largest class was characterized by a few multi-system SDOH and had low service needs. Two classes had differing patterns of school service use, one with a greater likelihood of special education service use alone and the other characterized by the use of multiple school services. Two classes were characterized by cross-system SDOH/service use (e.g., homelessness, child protection, placement in care, mental health, and special education services). We then assessed whether race/ethnicity predicted class membership and tested educational distal outcomes. American Indian, Black, and Latinx children had higher odds of exposure to both cross-system SDOH classes. Students facing any SDOH, particularly those with greater multi-system SDOH exposure, had worse attendance and academic achievement. Our study indicates that children are navigating complex experiences of SDOH and service needs, with a disproportional likelihood that Black children, Indigenous children, and other children of color (BIPOC) experience SDOH. Identifying patterns of SDOH provides an opportunity for policymakers and practitioners to intervene to promote health equity. By understanding facilitators and barriers to child well-being, the results inform how child-serving systems can strive toward health equity.

A Comparative Analysis on Economic Roles of Government and Principles of Taxation between Public Economics and Siyasah Shar‘iyyah

This research is an exploratory study on the similarities and differences of the justifications, objectives, roles of government and principles of taxation between public economics and siyasah shar‘iyyah. It aims to contribute towards integration of knowledge between modern economic theories and Islamic heritage in public economics. Despite similar focus on governance and social welfare, there is a lack of comparative study between public economics and siyasah shar‘iyyah in the literature. The research utilizes qualitative analysis on relevant textual materials on public economics and siyasah shar‘iyyah to identify and compare the major themes in terms of arguments for the establishment of a government, its economic objectives and roles, and taxation principles. The establishment of a government in public economics is based on the need to balance between efficiency and equity, address market failures, and provide public goods. Siyasah shari‘iyyah argues for a government based on fulfilling maqasid shari‘ah, uphold justice, and protect the rights of people. The principles of taxation in public economics often emphasize efficiency, equity, revenue sufficiency, neutrality, and administrative feasibility. In contrast, the principles of taxation in siyasah shar‘iyyah prioritize justice, prohibition of exploitation, funding public services, transparency and accountability, and wealth distribution in accordance with Islamic values. Originality/Value: The advancement of Islamic economics requires the integration of modern economic knowledge with divine revelation. Since public economics is a specialized subfield within economics, the integration efforts with siyasah shar‘iyyah have been notably deficient. This study aims to address this gap by undertaking a comparative analysis of fundamental principles and objectives between public economics and siyasah shar’iyyah.

Taxation in the Digital Age: An Examination of the Necessity, Feasibility, and Implications of Taxing Virtual Infrastructures

This research paper explores the feasibility, methods, and implications of taxing virtual infrastructures within the evolving digital landscape and economy; considering the proliferation of digital assets, online transactions, and virtual entities, the taxation of virtual infrastructures becomes imminent as an avenue for government to accumulate revenue for effective government administration. The paper examined the objectives of the study through primary data collected from 320 tax professionals and 297 IT experts to explore the impact of virtual infrastructure taxation on government revenues, the feasibility of taxation models, its effects on innovation and investment in the digital sector, and the challenges of cross-border tax strategies. Findings show that although taxation of virtual infrastructures significantly enhances government revenues, contributing to fiscal sustainability and the funding of public services and infrastructure projects, measures must be put in place to cushion the effect of such taxation on investment and innovation in the digital economy, as the taxation of virtual infrastructures were found to hamper investment and innovation significantly. Also, the implementation of modified traditional and emerging taxation models is shown to increase the feasibility of taxing virtual infrastructures, offering opportunities to enhance government revenues while fostering digital innovation. Data analysis, including Pearson correlation and linear regression methods, was employed to assess the relationships between the variables. Moreover, cross-border tax strategies are found to have negative implications for the taxation of virtual infrastructures, including profit shifting, transfer pricing, and competition among countries to attract digital firms. International cooperation and comprehensive tax reforms are suggested to address these challenges and ensure equitable tax contributions. The study underscores the significance of global collaboration in addressing cross-border taxation challenges and recommends the integration of modern tools and technologies to streamline tax processes while developing modified tax methodologies and policies that suit the digital economy.

Factors influencing Voluntary Tax Compliance Among Small and Medium sized Enterprises in Kenya

Tax compliance is essential for generating revenue to fund government activities and public services. Despite the efforts of the Kenyan Revenue Authority (KRA), compliance remains a challenge due to factors such as complex tax systems, high compliance costs, and negative taxpayer attitudes. The study examines the factors that influence voluntary tax compliance, including information availability, tax compliance costs, and individual attitudes and perceptions. It delves into tax compliance theories, such as the Contingency Theory of Taxation and the Ability to Pay Theory, shedding light on their impact on organizational behavior and financial performance. Empirical evidence from previous studies is discussed, highlighting the importance of tax education and the perception of tax fairness in promoting compliance. The study also identifies challenges specific to Kenya, such as a complex tax system, high compliance costs, and negative attitudes toward taxation, which hinder compliance, particularly among SMEs. It underscores the efforts made by the Kenyan Revenue Authority (KRA) to enhance compliance but acknowledges the persistence of challenges. The abstract concludes by emphasizing the need for a comprehensive understanding of tax compliance to ensure an equitable and efficient tax system that supports economic growth and national development in Kenya and other developing nations.

The Influence of Justice Perception on Tax Compliance Behavior by the Mediating Influence of Social Support: An Empirical Investigation in Pakistan

Governments modify their financial commitments and levy taxes to fund public services. Every person's tax behavior is unique. Tax compliance is a cooperative relationship between active taxpayers and the government. Additionally, taxpayers hide certain assets to claim deductions and lower their tax liability. Rules often include tax audits and penalties to collect tax amounts. The behavior of tax compliance is the primary objective of the research. Using a quantitative technique, we seek the respondent's view of the fairness of tax legislation. Only 325 practitioners filled out the 400 surveys submitted to bar councils. Pakistan has to improve its tax collecting system, which is why there are a lot of issues with tax collection. Lack of knowledge is a significant problem for individuals about tax collection. Policies and rules adopted by the Pakistan government need to be revised, and there is a need to conduct programs and seminars on tax collection for both government and individuals. The legal system is more effective in recovering tax penalties, whereas procedural justice investigates people's tax compliance. Furthermore, taxpayers hide part of their assets to lower their taxable income and file deductions. To evaluate and quantify tax collecting system fraud, tax auditing is an important area of study. There is a favorable and statistically significant correlation between tax compliance behavior and impression of justice, according to the results. This proves that the null hypothesis is false and that there is a significant connection. The framework of Pakistan's tax system may continue to function and contribute to the country's economy if people work together with the government and do their jobs effectively. The tax justice system provides a more effective means of identifying issues and suggesting solutions.

Efficiency Improvement Strategies for Public Health Systems: Developing and Evaluating a Taxonomy in the Australian Healthcare System.

As demand for healthcare continues to grow, public health systems are increasingly required to drive efficiency improvement (EI) to address public service funding challenges. Despite this requirement, evidence of EI strategies that have been successful applied at the whole-of-system level is limited. This study reports the development, implementation and evaluation of a novel taxonomy of EI strategies used in public health systems to inform systemwide EI models. The public health system in New South Wales, Australia, operates a centralised EI model statewide and was the setting for this study. An audit of EI strategies implemented in the NSW Health system between July 2016 and June 2019 was used to identify all available EI strategies within the study timeframe. A content management approach was applied to audit the strategies, with each strategy coded to an EI focus area. Codes were clustered according to similarity, and category names were assigned to each cluster to form a preliminary taxonomy. Each category was defined and examples were provided. The resulting taxonomy was distributed and evaluated by user feedback survey and pre-post study to assess the impact on EI strategy distribution. A total of 1127 EI strategies were identified and coded into 263 unique strategies, which were clustered into nine categories to form the taxonomy of EI strategies. Categories included the following: non-clinical contracts and supplies; avoided and preventable activity; clinical service delivery and patient outcomes; finance and operations; recruitment, vacancies and FTE; staffing models; leave management; staff engagement and development; premium staffing; and clinical contracts and supplies. Evaluative findings revealed a perceived reduction in the duplication of EI work, improved access to EI knowledge and improved engagement with EI processes when using the taxonomy. The taxonomy was also associated with wider use of EI strategies. Whole-of-system EI is an increasing requirement. Using a taxonomy to guide systemwide practice appears to be advanta-geous in reducing duplication and guiding practice, with implications for use in health systems internationally.

Prepektif Abu Yusuf Dan Ibnu Khaldun Dalam Konsep Dan Kontribusi Perpajakan Terhadap Perekonomian Di Indonesia

Tax is the largest source of state revenue, the collection of which is borne by the taxpayer. As the country's largest source of income, the government as the tax authority seeks every year to increase revenue from the tax sector. Donations from taxpayers will be processed by the government and used to fund development and public services. In Islam, the concept of tax (dharibah/jizyah) is defined as obligatory donations from the community to the state in accordance with the provisions, namely based on laws that are coercive and used for public spending. In its development jumhur ulama' tend to use the word dharibah to refer to taxes, as assets collected as an obligation. Related to his views on the economy, Ibn Khaldun based his views on the principles of development and social welfare. This also applies in matters of taxation, Ibn Khaldun based his thoughts on taxation on the principles of fairness and proportionality. This is reflected in several of his works in the field of economics in general, and taxation in particular, such as the Muqoddimah book. In the Muqoddimah book, Ibn Khaldun explains that the most important factor for creating a profitable business atmosphere is to lighten as much as possible the tax burden on business people, with the aim of promoting the business world by guaranteeing greater profits.The purpose of this research is to explain the concept of the perspective of Abu Yusuf and Ibn Khaldun in the concept and contribution of taxation to the Indonesian economy. In the context of the perspectives of Abu Yusuf and Ibnu Khaldun and the contribution of taxation, can they increase the perspective that is in their minds, at least has it been implemented in Indonesia in order to advance Indonesia and improve people's welfare, especially in improving the Indonesian economy by using tax money in things that develop Indonesia, such as creating comfortable workplaces and facilities. This research uses normative juridical research (legal research), namely research that uses materials from written regulations or other normative legal materials. By using the deductive thinking method (a way of thinking in drawing conclusions drawn from something of a general nature that has been proven that he is right and the conclusion is intended for something special). The research approach is a historical approach (historical approach) and a concept approach (conceptual approach). What is meant by a conceptual approach (conceptual approach) is an approach based on the doctrines and views developed in the science of law.Abu Yusuf's concept and contribution of taxation to the economy in Indonesia is very fair, because the government collects taxes in a balanced or equitable manner according to the assets or wealth he has, for example, such as property tax based on how big the house is, vehicle tax, company tax also depending on how much profit he makes. company owned. So that Abu Yusuf's thoughts regarding taxes are very good to apply especially to agricultural or mining taxes because the taxation is not based on money but can be used for the harvest to be given to the state as a source of tax, so the government will collect the harvest and sell it to the community with affordable prices, or can also be given to people who have a shortage of daily necessities. Meanwhile, according to Ibnu Khaldun, taxes are only collected when the government does not hinder production and trade activities. The tax applied must be of a legal type and in accordance with Islamic law. Taxes are aimed at maintaining the stability (security) of citizens, people's welfare, justice and equity, but in Indonesia the tax system is very valid but people's appreciation in paying taxes is still lacking, especially the PBB tax.However, it can be concluded that the implementation of the existing tax system in Indonesia is the same as the thinking of Abu Yusuf and Ibn Khaldun, the only difference being the tax collection system.

Analyzing the Relationship Between Public Debt and Poverty Reduction in Developing Countries: An Empirical Study

Purpose: The goal of this current research is to investigate the link between public debt and poverty reduction in developing countries. The study aims to examine the influence of public debt on poverty reduction while considering other contributing factors such as economic growth, population, inflation, human development index, and institutional quality. Theoretical framework: The theoretical framework of this research on the impact of public debt on poverty reduction in developing countries is grounded in two key theories: Debt Overhang Theory and Fiscal Space and Poverty Reduction theories. The first theory posits that high levels of public debt can lead to negative consequences for economic growth and poverty reduction. The second theory emphasizes the importance of fiscal space in poverty reduction efforts. Fiscal space refers to the financial resources available for a government to fund public goods and services without jeopardizing debt sustainability. Method/design/approach: In this research, a panel data approach is utilized to investigate the correlation between public debt and poverty reduction in developing countries. The panel dataset encompasses a 21-year period, from 2000 to 2021, and includes data from 20 developing countries. Results and conclusion: The study shows that public debt has a significant and positive correlation with poverty, indicating that high levels of public debt can lead to an increase in poverty in developing countries. Research implications: Because high levels of public debt can lead to an increase in poverty in developing countries, countries need to exercise caution when taking on debt and prioritize debt sustainability to avoid negative effects on poverty levels. In contrast, economic growth and human development have a significant and negative correlation with poverty, suggesting that these factors can contribute to poverty reduction in developing countries. Originality/value: The analysis highlights the complex relationship between public debt and poverty reduction in developing countries. Although the results are mixed, they emphasize the need for policymakers to adopt a comprehensive approach to poverty reduction that addresses not only reducing public debt but also promoting economic growth, enhancing institutional quality, and addressing other poverty-contributing factors.