Sales Tax Research Articles

EXAMINE THE EFFECTS OF GOODS AND SERVICES TAX (GST) AND ITS COMPLIANCE: REFERENCE TO SIERRA LEONE

This study analyzes the effects of (GST) and how it is being implemented in Sierra Leone. GST replaces previous taxes, including domestic sales tax, import sales tax, entertainment tax, hotel room tax, restaurant tax, food tax etc. The objectives of this study are to know the effect of GST on the Sierra Leone Economy, to know if GST implementation will lead to an increase in prices of goods and services; to assess GST compliance rate in Sierra Leone; and to know the reasons for GST implementation in Sierra Leone. The data collection method used both primary and secondary sources the study's participants were 89 employees of NRA and business owners in Sierra Leone 2021 to 2023. Questions were analyzed using SPSS in the form of descriptive analysis, chart, and correlation coefficient. The results showed that GST implementation has positive effects on Sierra Leone Economy. The introduction of GST is to boost revenue and promote economic growth in Sierra Leone. GST introduction in Sierra Leone has resulted in increased prices of goods and services. It is recommended that the NRA should provide tax education and awareness and provide availability and accessibility of technological infrastructure for GST implementation in the country.

Empirical Evidence on the Effects of Wayfair on Brick and Mortar Stores: The Case of South Dakota

Employing very specific data for South Dakota, this study shows that the requirement of collecting a sales tax by remote sellers gave rise to a 6.99% sales increase for brick-and-mortar retail sellers from 2018 through 2022. For this period there was also an approximate 4.54% increase in employment for brick-and-mortar employers. Larger operations, and those parts of a chain, experienced even higher post sales-tax growth. There was a significant amount of net moves out of the state post-2017, but employment losses for such moves were lower for brick-and-mortar retailers.

GST: A Journey Towards Excellence in Taxonomy

Goods and services tax is a uniform indirect tax levied on all goods and services produced in the country and all goods and services imported from abroad. GST is a single uniform indirect tax which will treat India as one market. In today’s scenario we pay various taxes i.e. Direct and Indirect taxes, which are felt as burden on us and due to these taxes the corruption is increasing. So, to overcome from all these taxation system the Central Government has decided to make one tax system i.e. Goods and Services Tax (GST). GST is one of the most critical tax reforms in India. It is a comprehensive tax system that will subsume all indirect taxes of State and central Governments and whole economy into seamless nation in national market. It is expected to remove the burden of existing indirect tax system and play an important role in growth of India. GST includes all Indirect Taxes which will help in growth of economy and proves to be more beneficial than the existing tax system. GST will also help to accelerate the overall Gross Domestic Product (GDP) of the country. GST is now accepted all over the world and countries are using it for sales tax system. This paper will help to show that, what will be the impact of GST after its implementation, difference between present Indirect Taxes and GST and what will be the benefits and challenges of GST after implementation

Efficiency–equity trade-off in the Irish carbon tax: A CGE investigation of mixed revenue recycling schemes

The literature shows that earmarking carbon tax revenues to reduce other distortionary taxes can mitigate the tax’s adverse economic implications, whereas transferring revenues directly to households can reduce the tax’s negative equity implications. This paper employs a dynamic applied general equilibrium model to examine the inherent efficiency–equity trade-off in Irish carbon tax revenue recycling (RR). We analyse pure RR schemes, where total carbon tax revenues are allocated either to increased household transfers or to tax rate reductions and mixed schemes, which combine these two. The findings show that all tax reduction RR options can reduce emissions while increasing gross domestic product and welfare (creating a double dividend), but they also increase inequality. However, when sales tax reductions are combined with household transfers, increased efficiency and equity can be found, resulting in a triple dividend. This paper contributes to the literature by directly investigating the efficiency–equity trade-offs in detailed mixed RR schemes. From a policy perspective, we conclude that mixed RR options generate better outcomes as the government can directly balance efficiency and equity outcomes.

Economic impact on local businesses of road safety improvements in Seattle: implications for Vision Zero projects

BackgroundLocal transportation agencies implementing Vision Zero road safety improvement projects often face opposition from business owners concerned about the potential negative impact on their sales. Few studies have documented the...

The relationship between sales growth, profitability, and tax avoidance

The study aims to examine the intricate interplay between sales growth, profitability, and tax avoidance strategies adopted by firms. Through an analysis of a diverse dataset spanning multiple industries and regions, this study investigates how sales growth influences a firm’s marketing approach to tax avoidance and its subsequent impact on profitability. The sample is Jordanian industrial firms listed on the Amman Stock Exchange for the study period between 2010 and 2020. Four critical variables used in the dataset are tax avoidance, return on assets, sales, and size. It employs a mixed-methods approach, including quantitative regression analysis and qualitative assessments of corporate tax strategies. The study results reveal a strong negative relationship between ROA and tax avoidance; for every unit increase in ROA, tax avoidance decreases by 0.198 units. Sales, however, do not exhibit a statistically significant association with tax avoidance. Firm size is an additional predictor with a marginally significant direct link with tax avoidance (β = 0.042, p = 0.049). This study highlights the central role of profitability in shaping tax avoidance strategies, with larger firms marginally more inclined toward tax planning.

Exploring Items for Measuring the Sales and Service Tax (SST) Compliance Constructs using Exploratory Factor Analysis (EFA) Procedure

Exploring Items for Measuring the Sales and Service Tax (SST) Compliance Constructs using Exploratory Factor Analysis (EFA) Procedure

The Cost of Safe Injection: Insights on Nonprescription Syringe Price Variability From Systematic Secret Shopping.

Although the sale of nonprescription syringes in pharmacies is legal in most states, people who inject drugs (PWID) continue to face obstacles to syringe purchase like stigma, prohibitive costs, restrictive policies, and stocking issues. We examined the consistency of syringe pricing as another possible barrier. We analyzed data on syringe prices and other relevant variables from 153 unique secret shopper visits to 2 retail chain pharmacies in Massachusetts (MA), New Hampshire (NH), Oregon (OR), and Washington (WA) as part of the fidelity component of a large pharmacy-focused intervention study. Pretax prices from purchases made between August 2019 and May 2021 were adjusted for inflation to 2022 dollars, and a linear regression of the price of a 10-pack of syringes was constructed to examine the determinants of syringe pricing. The average real price of a 10-pack of syringes across all states was $4.53 (SD = 0.99), with wide variability between pharmacies (max = $11.44, min = $1.70) and between states (mean OR = $5.76, WA = $4.74, MA = $4.33, NH = $4.30). Forty-seven percent (n = 72) of the purchases were taxed despite syringes being tax exempt in MA and WA, and not having a sales tax in NH or OR. The results of the regression suggest that certain needle gauges were associated with lower overall prices, while 1 pharmacy chain and 2 syringe brands were associated with higher overall prices. The high variability in syringe pricing presents another barrier to pharmacy-based syringe access since high prices may leave PWID no choice but to reuse or share needles, especially in areas with limited alternatives or without a syringe service program. Leadership from healthcare systems, pharmacy chains, and state and local policymakers is essential to reduce stigma and to implement policies that streamline syringe purchases, eliminate the taxation of exempt syringes in accordance with state laws, and reduce the variation in syringe prices.

Citizen Preferences and Awareness of Tax Revenue Options: Public Opinion on South Carolina’s “Tax Swap”

Tax complexity makes it challenging for citizens to understand how taxes imposed by state and local governments affect their tax bill. This paper considers citizen awareness and preferences for tax revenue options in the presence of tax features that increase complexity. The researchers mailed a survey questionnaire to a random sample of South Carolina voters measuring their level of knowledge and preferences for school tax funding during the last half of 2021. A sizable majority of respondents report the property tax as their least preferred option to fund school operations when compared to sales tax or commercial property tax, with variation in support by ideology, homeownership, and partisanship. However, respondents are broadly uninformed of current school tax funding mechanisms regardless of college degree attainment, ideology, and other important indicators. Most respondents are not aware of the “tax swap” that replaced residential property tax with a one-cent sales tax to fund South Carolina school operations.

Plugging the Tax Leak: An Analysis of North Carolina’s Local Sales Tax Redistribution Policy

Amid rising concerns over the urban-rural divide, taxation equity, revenue generation, and local tax leakage, several states are contemplating measures to support jurisdictions perceived as bearing the brunt of evolving economic landscapes. In 2015, North Carolina introduced a system for local sales tax revenue sharing, wherein each county contributed to a pool of local sales tax revenue, subsequently redistributed among 79 of the 100 counties. This policy aimed to address tax leakage by ensuring that half of the base local sales tax remained at the point of sale, with the other half distributed on a per capita basis. In this analysis, we evaluate the policy’s effectiveness in achieving this equilibrium and identify limitations and shortcomings.

Real Effects of Non-Streamlined Sales Tax Administration: Evidence from the Florida Hotel Industry

Real Effects of Non-Streamlined Sales Tax Administration: Evidence from the Florida Hotel Industry

Is Sales Tax Included in the Price? Consumer Inattention and Price Competition

Is Sales Tax Included in the Price? Consumer Inattention and Price Competition

Modeling Approach Matters, But Not as Much as Preprocessing

Revenue forecasting accuracy is critical to governmental operations. This paper addresses the question: What is the best technique for forecasting sales tax revenue? Prior studies in this area have focused on the differences between machine learning techniques and traditional approaches and neglected to consider how differences in pre-processing steps for the data before the forecasting model is applied are important. Here, we show that machine learning techniques do not always provide increased forecasting accuracy. Instead, the modeling choices matter, but less than the prior literature and practice suggested. Rather, pre-processing makes the most significant difference in forecasting accuracy, and forecasters need to understand the unique characteristics of time series data to improve forecasting performance. The immediate implications of these findings are that the focus of practitioners of in sales tax revenue forecasting should shift from prioritizing model choice towards data pre-processing.

The Effect of Florida's Sales Tax Repeal on Menstrual Hygiene Products: using Synthetic Control Methods

The Effect of Florida's Sales Tax Repeal on Menstrual Hygiene Products: using Synthetic Control Methods

Regulatory Burdens and Entrepreneurship: Evidence from Sales Tax Complexity

Regulatory Burdens and Entrepreneurship: Evidence from Sales Tax Complexity

Local sales tax exportation: The impact of commuters, tourists, and college students on the tax base

AbstractLocal sales tax bases are determined by factors including businesses, residential populations, and nonresidential visitors. This paper capitalizes on the COVID‐19 pandemic, using the sudden absence of in‐commuters, tourists, and college students to estimate the contributions these populations have on the sales tax base in North Carolina's 100 counties. The findings suggest that losing one in‐commuter results in a loss of roughly $1000 a month in taxable sales. Similarly, the loss of one hotel night booking results in a loss in taxable sales of approximately $525. This translates, for the median county, to exporting 17% to in‐commuters and 12% to tourists. The impact on the loss of a residential college student is less clear.

Tourism Impacts GDP Growth (and Decline)

According to the recent “World Tourism And Travel Council” report tourism contributes 10.3% toglobal GDP. In 2020, it dropped to 5.5 due to the coronavirus pandemic. It is an industry that createsat least 260 million jobs. Tourism’s proportions to a country’s GDP is closely linked to the number ofjobs it creates. When tourism develops, businesses thrive, which leads to more job opportunities. Asa result, more people have money to spend within their local economy. This increase in sales tax revenuefunds important infrastructural and environmental endeavours in the community. As an examplein 2022, the United States reported the highest total contribution of travel and tourism to GDP, withthese industries generating, directly and indirectly, roughly two trillion U.S. dollars. The tourism sectorin the Latin American and Caribbean countries contributes significantly to GDP earnings, thoughthis contribution is not reflected in the domestic income and product accounts of most countries. Inthe Bahamas, tourism accounts for about one-third of GDP, and most sectors of economic activityare directly or indirectly linked to it. In Barbados, tourism is the leading economic sector, accountingfor 15 percent of the GDP in 1992. In Jamaica, the tourism contribution to GDP was 13.4 percent in1992, while in Mexico it was only 4 percent.

PENTINGNYA PENERAPAN PERATURAN PEMERINTAH NOMOR 44 TAHUN 2022 KEPADA PENGUSAHA KENA PAJAK DI WILAYAH JABODETABEK

The purpose of this study is to find out more about PP No 44 of 2022 regarding the application of value added tax on goods and services and sales tax on luxury goods to taxpayers and taxable entrepreneurs in the Jabodetabek Region. The research method used is a qualitative descriptive method with a factor analysis content approach using 25 respondent data. Researchers used direct interviews with medium sized business people and franchise business people in the Jabodetabek area.This research is very useful to find out the level of understanding of medium sized trading businesses regarding the implementation of Government egulation No 44 of 2022 concerning the application of the value added tax on goods and services and the sales tax on luxury goods and its implementation in sales transactions.The limitations of this research are only limited to the application of value added tax on goods and services and sales tax on luxury goods in the Greater Jakarta area and its surroundings. The reults of the research are to increase public understanding, especially traders and medium-sized businesses for the implementation of PP No 44 of 2022 concerning the application of value added tax on goods and sales tax on luxury goods that support the national income sector

Contribution of Indirect Taxes on Goods to Economic Growth of Pakistan (1972-2022)

PURPOSE Economic growth is influenced by the changes in indirect taxes imposed by the government on the production/consumption of goods. This paper aims to identify the empirical relationship between indirect taxes – i.e., federal sales tax, federal excise duty, and customs duty – and the economic growth of Pakistan. METHODOLOGY For this purpose, annual time series data from 1972 to 2018 are used. The objective of the study is to evidence the long-run and short-run relationships of federal sales tax, federal excise duty, and customs duty with economic growth. The Augmented Dickey-Fuller unit root tests are used to check the stationarity of each variable. The Johansen Cointegration Test is performed to identify the cointegration among variables. The Vector Error Correction Model (VECM) is used to estimate the long-run and short-run relationships among these variables. FINDINGS The results of the study show that there are two cointegrating equations among variables. GDP Lag5, GDP Lag6, ST Lag1, ST Lag5, and FE Lag4 possess a positive impact on the economic growth of Pakistan. However, GDP Lag2, FE Lag6, and CD Lag7 have a negative impact on the economic growth of Pakistan. Previous years’ deviations from long-run equilibrium are corrected in the current year at an adjustment speed of 33% and 18% for GDP and ST, respectively. CONTRIBUTION/IMPLICATIONS Since the sales tax has a positive impact on economic growth, whereas federal excise duty and customs duty have a negative relation, it is advisable to form policies that contribute to economic growth instead of restricting it. As of the published statistical records of 2018, sales tax, federal excise duty, and customs duty contribute 65 per cent, 9 per cent, and 26 per cent, respectively, to the total indirect taxes. This collection structure is required to be rationalised to boost economic growth.

On the Role of Sales Taxes for Efficient Compensation of Property Loss Under Strict Liability

Abstract When a victim loses property due to an injurer’s wrongful act, it must be decided whether the damages award should include the sales taxes associated with the lost property’s replacement. This is especially acute when the victim can make other use of the damages award than replacement. This paper compares regimes that differ in how they treat sales taxes, focusing on possible distortions of consumption and care choices. We find that regimes that include sales taxes in damages awards only when incurred to replace the lost property (as, for instance, the German Civil Code does) induce suboptimal consumption and care incentives. Distortions of care incentives also depend on the nature of care expenditures (monetary or non-monetary).