Effective Tax Research Articles

How protective are border carbon taxes for Canadian industry? The critical role of US emissions pricing

AbstractBorder carbon taxes are considered as an important instrument to promote sustainable practices abroad and to level the playing field for domestic emission‐intensive and trade‐exposed (EITE) industries. We find that US emissions pricing plays a critical role in the effectiveness of border carbon taxes in protecting the international competitiveness of Canadian EITE producers. Border carbon taxes are more effective when the US follows the other OECD countries with stringent CO2 emissions pricing than when the US abstains from emissions pricing. In the latter case, border carbon taxes reduce the competitiveness of Canadian EITE export supply to the US (Canada's most important export destination), weakening the initial protective effect of border carbon taxes on the Canadian domestic market.

Pengaruh Pajak Daerah, Dana Alokasi Umum, Penggunaan Saldo Anggaran Lebih terhadap Belanja Daerah pada Kabupaten/Kota Sumatera Selatan dan Kepulauan Bangka Belitung

This This study aims to determine the effect of Local Taxes, General Allocation Funds and the Use of Excess Budget Balances on Regional Expenditures at the Regency / City Government of South Sumatra and Bangka Belitung Islands. This research data uses secondary data. This research data is obtained from the Regional Government Financial Report Audit Results (LHP LKPD) 2018 - 2022. The sample consisted of 17 Regency / City of South Sumatra and 7 Regency / City of Bangka Belitung so the total sample was 24 Regency / City samples within a period of 5 (Five) years (saturated sampling method). Multiple linear regression data analysis techniques using the help of the Statistical Product and Service solutions (SPSS) program version 26.00. The results of this study indicate that: (1) Local Tax partially has a positive and significant effect on Regional Expenditure (2) General Allocation Fund partially has a positive and significant effect on Regional Expenditure (3) Use of Excess Budget Balance partially has a positive and significant effect on Regional Expenditure (4) Local Taxes, General Allocation Fund, and Use of Excess Budget Balance simultaneously have a positive and significant effect on Regional Expenditure.

The association between the health promotion levy and employment in South Africa: an interrupted time series analysis

BackgroundThe production and consumption of sugar-sweetened beverages (SSBs) have been increasing over the past years, globally. However, there is overwhelming evidence linking SSBs to the rising prevalence in obesity and its comorbidities. In South Africa, the prevalence of overweight and obesity is high and is among the highest in Sub-Saharan Africa. In response to rising prevalence in obesity and its comorbidities, on 1 April 2018 the South African government introduced an SSB tax, known as the Health Promotion Levy (HPL). However, the levy has been opposed by the sugar industry, claiming that it leads to jobs losses. Against this backdrop, this study seeks to investigate the association between the HPL and employment in the sugar industry.MethodsWe employed single-group interrupted time series analyses using the Quarterly Labour Force Survey data from Statistics South Africa.ResultsOur results show that the HPL has not been associated with job losses (or generation) in the sugar-related industries in South Africa. These findings are consistent with the findings on the effects of SSB taxes on employment in other jurisdictions.ConclusionsConsidering that the HPL does not impede employment, and the overwhelming evidence on the effectiveness of SSB taxes, together with the relatively low tax burden, it is imperative that the government raises the HPL from the current 8% of the retail price to the WHO-recommended 20% threshold. The government should also consider expanding the HPL to fruit juices. Such strategies are important in encouraging people to reduce the intake of SSBs, while enabling the government to raise additional revenue for the fiscus.

Tax Incidence and Distribution in a Sraffian Conflict Inflation Framework

ABSTRACT This paper discusses the distributive effects of indirect taxes on produced commodities in a Sraffian conflict inflation framework, in which we make use of a simple ‘Corn Model’ to generalize some results from Okishio ([1958]1977) and apply them to the question of real tax incidence. We show that real tax incidence depends on whether the tax rate is levied on basic or non-basic goods and that in the case of a tax imposed on basic goods, different results in terms of real tax incidence depend on different assumptions about how firms increase prices and workers increase bargained money wages. Within this framework, income distribution, real tax incidence and cost-push inflation are jointly determined by the distributive conflict and the relative bargaining power of workers and firms, expressed objectively in terms of the size and frequency of price and money wage increases. From these results, we argue that a reduction in indirect taxes on basic goods could be a desirable anti-inflation policy, as such reduction, even if accompanied by revenue compensating increases in the taxation of non-basics, would increase both the real wage and the real rate of profits, while permanently lowering the rate of inflation.

Bibliometric analysis of research trends and networks in carbon tax studies: Insights into environmental and economic policy implications

Carbon taxes are increasingly recognized as a critical tool in mitigating climate change by reducing carbon emissions. This study analyzes research trends in carbon tax studies using bibliometric techniques and social network analysis to explore their environmental and economic impacts and policy implications. By analyzing 922 documents from 308 sources published between 1968 and 2024, the study identifies key topics, emerging trends, and collaboration patterns among researchers. The results show a significant increase in carbon tax publications and citations, particularly from 2000 to 2019, peaking around 2017–2019, followed by a decline after 2021. The most frequently studied topics include carbon tax effects on emissions reduction, economic balance, and environmental sustainability. Social network analysis reveals influential researchers and institutions driving the discourse on carbon taxes, highlighting the importance of interdisciplinary collaboration in shaping effective policies. These findings provide insights into the evolution of carbon tax policies and underscore the need for continued research on specialized themes such as the role of carbon taxes in supply chain management, social equity, and energy policy. AcknowledgmentsThe authors would like to express their sincere gratitude to the Rector and the Dean of the Faculty of Economics and Business, Hasanuddin University for their unwavering support and invaluable assistance in this analysis. Their commitment to advancing academic research and community service has been instrumental in completing this study.

Corporate social responsibility and the financial performance of global banks: the moderating role of corporate tax

ABSTRACT This study examines the relationship between corporate social responsibility (CSR) disclosure and the financial performance of global banks. This study investigates the moderating role of corporate tax on the nexus between CSR and the financial performance of banks. The sample consists of 233 banks available at Refinitiv Eikon database, and the sample period is between 2013 and 2018. This study tests the hypothesis using the year fixed-effect panel regression model. The findings show that CSR disclosures significantly and positively impact financial performance. Social and governance disclosure poses a positive relation. However, environmental disclosure shows a negative impact. Moreover, this study finds a significant and positive moderating effect of corporate tax between CSR and banks' performance. This study presents valuable insight into stakeholders about banks' CSR disclosure and the country's taxation benefits. Besides, the findings will be helpful for the regulators in implementing the CSR policy and making strategic decisions.

Quantile regression of tobacco tax pass-through in the UK 2017–2021: how have manufacturers passed through tax changes for different tobacco products in small retailers? Analysis at the national level and by neighbourhood of deprivation

BackgroundThe effectiveness of tax increases in reducing tobacco consumption relies on the tobacco retailers and producers passing on increases to consumers (tax pass-through). Previous UK research on supermarkets found heterogeneous...

The role of tax incentives, their considerations and effects in promoting investments and attracting investors in the Kingdom

The role of tax incentives, their considerations and effects in promoting investments and attracting investors in the Kingdom

Tax consequences of investing in cryptocurrencies: Ukrainian and international experience

The article explores the tax aspects of investing in cryptocurrencies, specifically the legal approaches to taxing digital assets in Ukraine and globally. The rapid expansion of cryptocurrencies and the growing interest in them from investors pose new challenges for states in regulating this area, particularly regarding the taxation of income from such investments. The author analyzes the current Ukrainian legislation on cryptocurrencies and tax obligations, comparing it with regulatory approaches in developed countries such as the United States, Germany, and Switzerland, which have already developed detailed mechanisms for taxing cryptocurrency transactions. The primary focus is on defining the legal status of cryptocurrencies as assets, addressing their taxation as income from sales or exchanges, and examining the possibility of applying standard capital gains tax schemes. The article highlights the issues of legal uncertainty in national legislation, particularly the lack of clear classification of cryptocurrencies as taxable objects, and the risks this uncertainty poses for both investors and the state. Special attention is given to the significance of tax regulation as a tool for either stimulating or hindering the development of the cryptocurrency market. The article proposes potential ways to improve cryptocurrency tax regulation in Ukraine based on advanced international practices. Specifically, it emphasizes the need to harmonize national legislation with the tax norms of the EU and other countries that have already developed comprehensive models for taxing digital assets. The study is highly relevant in the context of the rapid development of the digital economy, global market integration, and the need to adapt the tax system to the realities of the digital asset market. The author stress the importance of establishing transparent and comprehensible tax norms that will encourage investment in the digital sector of the economy and ensure the financial stability of the state.

PENGARUH PAJAK TERHADAP TINGKAT KESEHATAN DAN PENDIDIKAN MASYARAKAT YOGYAKARTA

This study is aims to investigate the effect of personal income tax to improving the welfare in Yogyakarta. The level of health and level of education are used as a reference in measuring the level of welfare in Yogyakarta. The data in this study are in the form of realization of personal income tax data, health sector expenditure data and education sector expenditure data in the period 2008-2017 obtained from the realization report of personal income tax in the Directorate General of Taxes of DIY and the realization report of APBD at the Directorate General of Fiscal Balance. This research uses quantitative methods, while the data analysis technique used in this study is regression analysis. The results of this study indicate that there is an effect of the personal income tax on the level of education both at the provincial and regional levels or the city of Yogyakarta. For the effect of personal income tax on the level of health only occurs at the district or city level, while at the provincial level there is no effect between the personal income tax on the level of health.

Assessing Cigarette Reduction Tax-Effectiveness in Low Tobacco Expenditure Contexts: An Application to Bolivia.

In this research we show that ambitious increases in tobacco tax rates can substantially reduce tobacco consumption, increase fiscal revenue, and provide net positive social benefits even in contexts of low consumption prevalence and intensity. Low nicotine intake still constitutes a grave disease risk factor, and the effectiveness of tax increases might be questioned if income effects are small. We adapt spatial variation of price methodologies to deal with low prevalence and intensity, censored data, and small samples using the Bolivian case as an illustration. We find an average price elasticity of demand of to . Using our estimates of elasticities, we develop a simulation to anticipate the effects of a 35% yearly increase of the Bolivian specific excise on tobacco starting in 2025. Our estimates show that by 2030, this reform could reduce the consumption of cigarettes by 52.6%, diminish the prevalence of smoking by 30.6%, and increase fiscal revenue by $123 million over six years. Moreover, we estimate that the abated direct medical costs of reduced consumption net of the deadweight loss associated with a tax increase would generate a net social gain of over $100 million in five years.

Navigating Tax Objectives and the Future of the Carbon Credit Market in the Gulf Cooperation Council Countries

Investments in carbon offset projects have been growing and are expected to continue to grow, and the carbon credit market is key in advancing the green economy. Carbon credits have tax consequences, one of them being value added tax (VAT), hence it is essential to look into the VAT aspects of carbon credits. This article analyses the evolving nature of carbon credits which led to complications from a VAT perspective. Further, the article addresses whether these credits should be classified as electronic services for VAT purposes or otherwise in Saudi Arabia and the United Arab Emirates.

Land productivity and environmental sustainability for G7 economies: Does an inverted U‐shaped curve exhibit green finance?

AbstractLand productivity including both water and agriculture are equally important for sustainable environment. The study investigate the role of water productivity and agriculture land along with the non‐linear effect of green finance on environment. Specifically, this research aims to investigate the effect of agriculture land, water productivity, green finance, environmental taxes and technologies on environmental sustainability in the Group of Seven (G7) countries, covering the timeframe of 1990–2020. The study also scrutinized the effect of green innovation and environmental regulations on the environment. This study uses novel panel data methods that are robust to nonparametric data. The empirical data are confirmed to be nonnormally distributed; therefore, the quantile regression approach is used. The empirical results confirmed an inverted U‐shaped curve for green finance, as its linear term is positive, and its nonlinear term negatively impacts carbon emissions. This supports the idea that green finance is effective for a group of seven economies; however, its magnitude should increase. Moreover, agricultural land, water productivity, environmental regulations, and green innovation negatively impact carbon emissions. By contrast, increasing economic activities, such as gross domestic product, increase carbon emissions. This study recommends increasing the focus on green finance, agricultural land, water productivity, and environmental regulations for the G7 countries to achieve the target of COP 27 and address climate change.

The effects of unilateral climate policy towards agriculture: A case study of Denmark

AbstractTo meet their climate policy obligations towards the EU, some EU member states will have to adopt strict climate policies towards agriculture. Responding to this need, the Danish parliament recently decided to impose a tax on greenhouse gas (GHG) emissions from the country's livestock production. We develop a simple model of primary agriculture and its interaction with the food industry to illustrate the main economic mechanisms determining the impact of a unilateral tax on GHG emissions from domestic agriculture. To study the allocation effects of the GHG tax on agriculture and the impact on the wider economy over time, we then present a disaggregated dynamic simulation model of Danish agriculture, embedded in a large‐scale computable general equilibrium model. The model predicts that a large share of the cost increase induced by the tax will be shifted forward onto higher input prices in the food industry and ultimately onto consumers via higher food prices, but landowners will also bear a significant part of the burden through a fall in land prices. The GHG tax will induce a reallocation from animal to plant production, which would be even more pronounced in the case of a livestock‐specific tax as currently foreseen, and from conventional to organic farming. This will help to reduce the total emissions from agriculture, but the largest share of the emission cuts will stem from a fall in output, as there are still few low‐cost technical abatement possibilities in agriculture.

Effect of Tax Incentives on Non-Oil Tax Revenue: Econometric Case Study from Nigeria (1981-2022)

The non-oil tax income in Nigeria is low and contributes less than 10% of the GDP. Also, non-oil export in Nigeria contributes less than 15% to the GDP reflecting an abysmal performance over the years. This study therefore empirically examined the effect of tax incentives on non-oil tax revenue in Nigeria from 1981-2022. Tax incentives was measured by export expansion grant while non-oil tax revenue was measured by total tax revenue, non-oil export, tax rate and real effective exchange rate. Unit root test was conducted using Augmented Dickey Fuller (ADF), Phillip Perron statistics and Kwiatkowski-Phillips-Schmidt-Shin test statistic and it was found that the variables are not in the same order of integration. Bound test result indicated long run significant relationship within the variables. Autoregressive Distributive Lag Model (ARDL) found that Export expansion grant had short run significant negative effect on non-oil tax revenue in Nigeria (β9 = -0.07, p-value = 0.0299 < 0.05) but had an insignificant positive effect in the long run (α8 = 1.29, p-value = 0.3738 > 0.05). Tax rate had positive significant effect on non-oil tax revenue in the short run (β3 = 0.01, p-value = 0.0027 < 0.05). However, in the long run, tax rate had negative insignificant effect on non-oil tax revenue (α2 = -0.28, p-value = 0.4822 > 0.05). the study concluded that export incentives have become a drain to government resources over the years. Based on the result, we recommended that export expansion grant processing time frame and payment should be improved.

Tourist taxes in Mauritius – assessing the laws of Mauritius and tourists’ perception

Purpose One way of addressing the negative effect of tourism is the imposition of tourist taxes. Accordingly, the purpose of this study is to look at the various forms of tourist taxes in Mauritius and the perceptions of tourists relating to effective tourist taxes in terms of their willingness to pay tourist taxes, the existence of a clear and precise legislation, the appropriate amount of tax to be collected and the uses of this tax money. The study explores the current of Mauritius, where tourism has always been seen as among its key pillars that sustain its economy and helped it to flourish. Design/methodology/approach To achieve these research objectives, the black-letter research method was used, which comprised the legal analysis of provisions surrounding tourist taxes to collect secondary data. In addition, some 25 tourists were targeted to conduct a semi-structured interview, particularly those who have visited Mauritius and have stayed at least one night in the country. Findings The findings reveal that the positive effect of tourist taxes will only be experienced if tourists are willing to come to the destination country and pay the tax, the willingness of which in turn relies on several factors established by existing studies. These were identified as the readiness to pay, the existence of legislation, the perceived optimal tax amount and the perceived uses of tourist taxes. Originality/value To the best of the author’s knowledge, at present, this study is amongst the first academic writings on tourist taxes in the context of Mauritius, and it is being carried out with the aim of combining a large amount of empirical, theoretical and factual information that can be of use to various stakeholders and not only to academics.

Ecological tax on industrial air pollution and its impact on reducing emissions in the cement industry: a case study of Lafarge Holcim cement company in Algeria

This study aims to highlight the importance of ecological tax in reducing air pollution caused by the cement industry. The focus is on limiting the emissions resulting from cement dust and polluting gases surrounding the Lafarge Holcim cement plant and its neighboring areas. The study explores the Algerian laws and decrees regulating the ecological tax on industrial air pollution, specifically the limits on dust and gas emissions set by Executive Decree No. 138/06, which governs the emission of dust, solid and liquid particles, and gases into the atmosphere. Among the key findings, the effectiveness of the ecological tax in reducing the amount of gas and cement dust emissions into the air surrounding the factory was evident. This includes gases such as sulfur oxides (SOX), carbon monoxide (CO), and nitrogen oxides (NOX). As a result, the company adopted an environmentally sustainable policy, investing in cleaner production technologies aimed at reducing greenhouse gases and cement dust emissions. This approach aligns with the ecological tax on industrial air pollution and demonstrates Lafarge Holcim's commitment to environmental sustainability.

Pengaruh Penerimaan Pajak Kendaraan Bermotor, Denda Pajak, dan Bea Balik Nama Kendaraan Bermotor terhadap Pendapatan Asli Daerah Kabupaten Deli Serdang

The purpose of this study was to determine the effect of Motor Vehicle Tax, Tax Fines and Motor Vehicle Transfer Fees on the Original Regional Income of Deli Serdang Regency, and to analyze the effect of Motor Vehicle Tax, Tax Fines and Motor Vehicle Transfer Fees together on the Original Regional Income of Deli Serdang Regency in 2019-2022 in monthly. The data collection technique used in this study was a documentation study. This study used multiple linear regression analysis methods. The results of the study showed that Motor Vehicle Tax had an effect on the Original Regional Income of Deli Serdang Regency, Tax Fines had a significant effect on the original regional income of Deli Serdang Regency and Motor Vehicle Transfer Fees had no effect on the Original Regional Income of Deli Serdang Regency. Motor Vehicle Tax, Tax Fines and Motor Vehicle Transfer Fees together had an effect on the Original Regional Income of Deli Serdang Regency. Motor Vehicle Tax, Tax Fines and Motor Vehicle Transfer Fees have a strong relationship to Regional Original Income, which is 0.814, or Motor Vehicle Tax, Tax Fines and Motor Vehicle Transfer Fees to Regional Original Income of Deli Serdang Regency, which is 81.4% while the remaining 18.6% is influenced by other factors not included in this study.

The Effect of Local Taxes, Capital Expenditure, Investment, and Labour Force on Local Revenue with Economic Growth as an Intervening Variable

This research aims to analyse the effect of local taxes, capital expenditure, investment, and labour force on local revenue with economic growth as an intervening variable in the regency / city in the Eks Karesidenan Pekalongan region year 2018-2023. The approach used is quantitative, using the Structural Equation Modeling (SEM) analysis method based Partial Least Square (PLS). The data analysed is secondary data obtained from the Central Statistics Agency (BPS) and related agencies. The research sample consists of all districts/cities in the Eks Karesidenan Pekalongan Central Java area with a six-year observation period. The results show that local taxes, capital expenditure, and labor force have a significant influence on economic growth, but only local taxes have a significant effect on local revenue. In contrast, investment do not show a significantly effect on economic growth or local revenue. Economic growth also has no significant effect on own-source revenues. Furthermore, the intervening variable of economic growth cannot mediate the relationship between local taxes, capital expenditure, investment, and labour force on local revenue. These findings indicate the need to optimise local tax and capital expenditure management strategies to increase local revenue. In addition, local governments need to pay attention to other factors beyond investment and labour force that can contribute to local revenue and economic growth in a sustainable manner

Green finance, environmental taxation, and green innovation: unraveling their influence on the growth- quality nexus in China—a provincial perspective

Abstract China's fast industrialization and urbanization have led to impressive economic growth and caused severe environmental degradation, resulting in increased CO2 emissions. These emissions have increased by leaps and bounds with China's rapid industrialization and urbanization. The case for sustainable development is compelling and has unleashed a search for green investments and technological innovations to meet the challenge. This study is motivated by the significant need to understand the effects of green finance, technological innovations, and environmental taxes on China's economic growth and environmental sustainability. Furthermore, it tries to investigate how these elements may help make the model more sustainable and not endanger the developmental achievements of the country. For this purpose, we employed a comprehensive econometric approach through longitudinal data, and different models included Two-step GMM, Two-step system-GMM, and CS-ARDL. These methodologies portray various ways green investments, green technological innovation, tax, urbanization, inflows of FDI, and industrial structure intersect to influence environmental and economic outcomes in China. The results reflect a strong negative correlation with green investments made with CO2 emissions, proving that high investments in green technologies and practices effectively reduce carbon outputs. The study also underlined regional disparities and technological innovations in green. The study, therefore, recommends more efforts by Chinese policymakers on green finance and investment, standardization, and the rise in environmental standards across the country; enhanced efforts in further bringing down CO2 emissions through ecological taxes and incentives; and collective efforts with strong governmental support for research and development in low-carbon technologies that can help place China on a sustainable economic path.