Tax Levels Research Articles

Analysis of the Effectiveness and Contribution of Land and Building Taxes to the Original Regional Income of Bekasi Regency

Land and Building Tax (PBB) is one of the regional taxes that has a major contribution to the Regional Original Income (PAD) of Bekasi Regency. This study aims to analyze the level of effectiveness and contribution of land and building tax (PBB) to the regional original income (PAD) of Bekasi Regency. This study used a quantitative descriptive method. The data source used in this study was secondary data with time series data types. Secondary data used are the financial statements of Regional Original Revenue (PAD) revenue and the Bekasi Regency Land and Building Tax (PBB) revenue report for 2017–2019. The results of this study indicate that the effectiveness level of land and building tax (PBB) revenue in Bekasi Regency for three years, namely from 2017 to 2019, shows that the criteria are very effective, with an average achievement of 113%. The contribution rate of land and building tax (PBB) to the regional original income (PAD) of Bekasi Regency for three years, namely from 2017 to 2019, shows the criteria of being deficient with an average of 18%. For the simple regression analysis, the results show that land and building taxes have a positive effect on local revenue

The Impact of Raising Alcohol Taxes on Government Tax Revenue: Insights from Five European Countries.

Reducing the affordability of alcoholic beverages by increasing alcohol excise taxation can lead to a reduction in alcohol consumption but the impact on government alcohol excise tax revenue is poorly understood. This study aimed to (a) describe cross-country tax revenue variations and (b) investigate how changes in taxation were related to changes in government tax revenue, using data from Estonia, Germany, Latvia, Lithuania and Poland. For the population aged 15 years or older, we calculated the annual per capita alcohol excise tax revenue, total tax revenue, gross domestic product and alcohol consumption. In addition to descriptive analyses, joinpoint regressions were performed to identify whether changes in alcohol excise taxation were linked to changes in alcohol excise revenue since 1999. In 2022, the per capita alcohol excise tax revenue was lowest in Germany (€44.2) and highest in Estonia (€218.4). In all countries, the alcohol excise tax revenue was mostly determined by spirit sales (57-72% of total alcohol tax revenue). During 2010-20, inflation-adjusted per capita alcohol excise tax revenues have declined in Germany (- 22.9%), Poland (- 19.1%) and Estonia (- 4.2%) and increased in Latvia (+ 56.8%) and Lithuania (+ 49.3%). In periods of policy non-action, alcohol consumption and tax revenue showed similar trends, but tax level increases were accompanied by increased revenue and stagnant or decreased consumption. Increasing alcohol taxation was not linked to decreased but increased government revenue. Policymakers can increase revenue and reduce alcohol consumption and harm by increasing alcohol taxes.

The understructure of market production

ABSTRACT This paper argues that the mainstream economics view of production based on the conventional factors of production is socially and empirically inaccurate, giving a distorted view of the nature of the production process and the agents responsible for it. Although the factors of production are essential, just as important are the various social, cultural, and political enabling conditions, or what is termed the ‘understructure’ of market production (the complex of infrastructures which underlie and enable market production). We gain an enriched understanding of what the economy truly is by studying the functioning of the understructure and the ancestral labour and care encompassed in it. If this revised view is correct, it has radical ethical implications. In particular, it implies that individuals do not morally deserve the bulk of the income (90% or more) that they receive in the market. High levels of redistributive taxation may therefore be legitimatea.

General literacy and effective taxation system in Africa

ABSTRACT This inquiry provides empirical evidence on the effect of general literacy on tax revenue mobilization in Africa over the period 1996–2021. This evidence is important given the low level of taxation in Africa and the lack of clarity on the nexus between a country’s literacy level and taxation effort. The paper employs a simultaneous quantile regression, and uses three different indicators of tax revenue mobilization as a percentage of GDP. The motivation for quantile regression technique is primarily based on two essential reasons: (i) the argument that the effect of literacy on taxation effectiveness is dependent on the existing level of tax revenue mobilization; (ii) tax revenue mobilization policies, to be effective, need to be adapted differently across countries with low, intermediate, and high levels of existing tax mobilization effort. Results show that improvement in general literacy appears to promote tax mobilization effort, and that the effect of general literacy on taxation is stronger for direct taxes than for indirect taxes (in terms of both significance and magnitude). Furthermore, in most of the results, the impact of general literacy is slightly stronger in the upper quantiles of the general literacy distributions. The results remain robust over alternative econometric estimation techniques.

МОДЕЛІ ТА МЕТОДИ УПРАВЛІННЯ ЗАЛУЧЕНИМ КАПІТАЛОМ НА ПІДПРИЄМСТВІ

Raised capital is a part of the enterprise's capital, which is formed at the expense of external sources, such as loans, credits, issuance of securities, etc. Raised capital, such as loans, bonds, shares or investments, is an important part of financing a business. It is an important tool for financing the company's activities, but at the same time it is associated with certain risks. Achieving effective management of this capital helps to ensure sustainable operation and growth of the enterprise, ensure financial stability and the ability to pay interest or repay loans on time. A business must determine the optimal mix of financing that meets its needs and constraints. Effective management of capital employed can help a company to be more competitive in the market, as it helps to influence the cost of capital and overall financial profitability. Factors affecting the capital structure include the organizational and legal form of the enterprise, industry specifics of operational activity, the size of the enterprise, the cost of capital, the freedom to choose sources of financing, the state of the capital market and the level of income taxation. Regular determination of capital management efficiency indicators is important for monitoring the current state of its structure. The important issues related to the effective use of loans and other forms of borrowed capital to achieve the company's financial goals are considered in the article. Debt management strategies and tools, optimization of debt service costs, as well as risks associated with the use of borrowed capital were studied.

Examining the environmental tax and the fishing grounds footprint nexus: Case of the African fishing industry

AbstractThe implementation of environmental stringent policies faces a trade‐off between ensuring livelihood sustainability and reducing global fishing footprints. This study investigates the impact of environmental tax on fishing footprints in 23 African countries from 2000 to 2018, using the smoothed instrumental‐variables quantile regression approach. The need to establish a sustainable fishing business in Africa, considering the growing fishing footprint, and investigate if environmental levies could help achieve this goal are the driving forces behind this study. The findings reveal that environmental tax reduces footprints in African fishing grounds up to the 0.75th quantile, beyond which its impact remains insignificant in its conditional distribution. More importantly, environmental tax stringency‐reducing impacts are only apparent in the coastal and middle‐income groups up to the 0.90th and 0.50th quantiles, respectively. Environmental tax appeared to only contribute to reducing fishing footprints beyond the 0.75th quantile with higher levels of pollution tax across its conditional distribution in landlocked countries, but remaining insignificant in the low‐income group. The insignificant impact on the low‐income group is due to relatively relaxed environmental regulations that are unable to address the ecological deficit. The findings further indicate that digital infrastructures and financial development can contribute to enhancing fishing grounds biocapacity, in promoting environmental awareness and ecofriendly strategies. These findings are significant because they show that, regardless of whether environmental standards are governed by common law or civil law legal systems, environmental taxes can be utilized to stop deleterious ecoenvironmental practices within the African fishing industry. The study recommends that policy makers adopt more stringent environmental regulations, particularly for the landlocked countries, whose limited fishery grounds biocapacity has dropped in recent years.

Conjectures of British Investment, Tax Revenues, and Deficit Amounts from the Thirteenth to the Nineteenth Century using the Concept of Economic Surplus

This article attempts to estimate trends in the levels of public and private investment, and national government surpluses and deficits from accumulated capital income, taxation, and rents estimated by different economic historians for England and the UK by utilizing the concept of Paul Baran and Paul Sweezy’s economic surplus. The data support historical accounts that income per capita growth begins to increase around the 1600s in Britain, perhaps due to the level of capital, tax, and land income achieving an adequate threshold amount. According to some historians, this would also be about the time of capitalism’s ascent as the dominant economic system in Britain. Even then, dramatic increases in investment and economic growth do not appear until the late eighteenth century when investment and deficits reach even higher levels. The new estimates developed in this article are offered as additional macroeconomic data supplements to works created by other authors and researchers and submitted as a demonstration of the concept of economic surplus and the power of threshold levels of private and public investment. Most of all they also give some support to Baran and Sweezy’s notion of a society’s economic surplus coming from labor exploitation and being used to further investment and government expenditures.

The Price of Power: How Managerial Taxes Affect Debt Contract Provisions

We examine how income taxes—both managerial and corporate—influence the design of firms’ debt contracts and their use of financial covenants in particular. Both levels of taxation have the potential to exacerbate conflicts of interest among creditors, shareholders, and managers and, consequently, should influence the design of their debt contracts. Specifically, a decrease in corporate and an increase in managerial taxes encourage managers to take more risk, accordingly, we predict and find that loans issued following such changes in taxation are more likely to include performance rather than capital covenants. A series of cross-sectional tests provide further insight into the effect of both levels of taxation, and corroborate our main inferences. Overall, our study demonstrates how debt contract layouts change in response to arguably exogenous changes in income taxes—and, in turn, managers’ preferences—for risk.

ВПЛИВ ПОДАТКОВОГО ЛАНДШАФТУ КРАЇНИ НА ПОДАТКОВЕ ПЛАНУВАННЯ ТНК В УМОВАХ ПРОЄКТУ BEPS

The article notes that in the context of globalization, multinational corporations exert an increasing influence on the economies of their home countries, host countries, and the overall state of international economic relations. The authors underline that tax planning is one of the TNC activities that grabs attention of the global public in terms of both its favorable and unfavorable effects. The article offers its own definition of the term «tax landscape», in which, unlike the existing ones, vertical, horizontal and temporal aspects are distinguished. The vertical aspect is presented as a synthesis of the supranational level of taxation and the national one; horizontal, as a system of tax rules and laws within a separate state; temporal, as a change in the main elements of taxation over time. It has been proven that at the current stage of formation of tax landscapes to characterize the supranational level, it is necessary to take into account the elements of taxation defined as part of the implementation of the international BEPS project: the global minimum tax, tax rates for surplus profits, and surplus profits as an object of taxation. The authors have been able to divide the studied countries into three groups depending on the level of direct taxation: high (United States, Canada and Australia), moderate (Great Britain, France, Italy, India, Germany and Switzerland), and low (China and Saudi Arabia). The first group (the United States) and the second group (the United Kingdom, Germany, France, Switzerland, and Italy) have been found to have the greatest tax losses as a result of «tax havens.» The level of direct taxation (profit and capital) in the countries of registration and countries of digital presence, the volatility of tax legislation, and compliance with the conditions of tax justice have been proposed as factors of the tax landscape to be taken into account by transnational corporations when developing tax planning strategies.

Modern Tax Trends and Economic Growth in a Turbulent World: Insights from Developed and Developing Economies

The article examines recent trends in tax level and structure changes within developed and developing economies in relation to economic growth. The study’s significance stems from increasing geo-economic turbulence and emerging risks in the global economy, necessitating fiscal regulation. The analysis spans the period from 2009, post the Great Recession, to the present day. We tested the hypothesis that discernible patterns could be identified through statistical analysis regarding the relationship between tax indicators (level and structure) and economic growth indicators. However, no such clear patterns were found. In essence, it cannot be definitively concluded that reduced tax levels and/or increased indirect tax shares do explicitly foster national economic growth. Tax impact on economic growth varies significantly across developed and developing economies, presenting a complex and nuanced picture. The nature and strength of this influence are largely shaped by the specific circumstances of each location and period. In order to identify their unique impact, counterfactual analysis is required. In the course of further research, it is important to consider, firstly, the increased fiscal activism of the post-pandemic period: in this case, the research outcomes may be different from those obtained for the period already examined. Secondly, considering the ongoing processes of geo-economic fragmentation, it is recommended to re-examine the influence of taxes on economic processes. This investigation should adhere to the evolving framework of new macro-regions worldwide, rather than the conventional dichotomy of developed and developing economies. Participants within these macro-regions, interconnected through supply and value chains, will need to work together to align their tax rules and policies for mutual benefits.

Determinants of Implicit Tax in Kaduna State, Nigeria

This paper investigates the impact of the tax compliance rate and corruption perception on implicit tax in Kaduna State, Nigeria. Data was collected through questionnaires and analysed using Endogeneity, Breusch-Pagan-Godfrey heteroskedasticity and Variance Inflation Factor tests. A Two Stage Least Square Regression Model was used to analyse the data, involving 523 questionnaires. The study found that income levels, corruption perception and public confidence in government have a significant positive impact on implicit tax in the state, and the tax compliance rate has an insignificant negative impact on implicit tax in the state. The study concluded that corruption is the main factor affecting the ability of the Kaduna State government to provide adequate public services in the state, and corruption increases the level of implicit tax. The Kaduna State government should make fighting corruption a priority, as this will help the government to save more, and to provide more public goods and services in the state.

Державна підтримка підприємців під час війни

The article is devoted to the substantiation of measures for the State support of entrepreneurs during the wartime. The publication proves the relevance of the study of the problems that arise in the process of substantiation and implementation of measures for the State support of entrepreneurs during the wartime. According to the results of the carried out analysis of modern scientific works on the topic of research, it is found that domestic scholars analyze the legislation that regulates entrepreneurial activity, and highlight trends in the development of entrepreneurship, taking into account the experience of developed countries in this area. At the same time, the problems of entrepreneurial entities are not given due attention. Measures for the State support of entrepreneurs are proposed, which provide for full or partial reimbursement by the State of the costs of restoring objects that were damaged during hostilities (it is recommended to divide the objects in need of restoration into groups and determine the priority of restoration for each of them using the adapted method of the sum of years, which is traditionally used to calculate the depreciation of fixed assets). The necessity of reducing the level of tax pressure on entrepreneurs is also substantiated. The main argument in favor of such a step on the part of the State is that the reduction of the level of taxation of entrepreneurs will gradually lead to a decrease in the shadow sector of the economy and an increase in the number of taxpayers. This point of view is substantiated using the conception of elasticity: it is illustrated that a relatively small reduction in tax pressure will lead to a significant increase in tax revenues. In addition, the article proposes to take into account the amount of financing by entrepreneurs of the needs of the Armed Forces of Ukraine and reduce the tax base or the amount of tax payments depending on the amount of such financing. Perspective areas of research on the problems that arise in the process of organizing the State support for entrepreneurs include: formulation of proposals for improving tax legislation to reduce the level of tax pressure on entrepreneurial entities; identification of factors influencing doing business during the wartime and assessment of such impact using mathematical tools; development of a mechanism for motivating entrepreneurs to more intensive volunteering.

보유세 부담과 세부담 제한제도에 대한 고찰

Korea's wealth tax was divided into property tax and comprehensive real estate tax when the comprehensive real estate tax was introduced in 2005, and since then, it has developed into a complex system with various burden enhancement and relief systems for each tax category. This study examines the dual burden and restriction structure of Korea's wealth tax system and examines how to rationalize the wealth tax burden according to the taxpayer's ability to pay through the example of the United States.
 The holding tax system tries to moderate the tax burden by operating the tax burden ceiling, fair market value ratio, tax credit, and overstatement limit for property tax and comprehensive real estate tax, respectively. However, these complex burden mitigation measures do not adequately assess the taxpayer's burden. Property taxes are supposed to optimize the level of tax burden based on physical taxation, but property taxes determine the level of taxation based on human taxation, which is a major departure from the essence of property taxes.
 Looking at the case of California in the United States, property taxes are assessed according to the principle of ad valorem taxation, and the burden is determined accordingly, and resident-oriented deductions and property tax payment credits are operated to appropriate the burden on taxpayers.
 In order to solve the structural problems of the estate tax, it is necessary to discuss the reorganization of the estate tax system. In order to reduce the tax burden on taxpayers, it is possible to consider introducing a plan to deduct the holding tax burden from income taxation, and it is necessary to discuss in-depth improvements to the taxation system by property tax period. It is also necessary to consider introducing a monthly payment system for property taxes for taxpayers' convenience.
 In the future, considering the globalization and aging of our society, it is necessary to discuss how to improve the integrated wealth tax system in order to appropriate the burden level of property taxes and prepare an integrated taxation system that suits the power.

Econometric forecasting of academic management in the face of uncertainty regarding hostilities

This article addresses the problem of interrelations between economic factors and military conflicts, examining the role of econometric forecasting in the context of academic management during periods of uncertainty surrounding hostilities. It delves into the two principal theories of classical macroeconomics – neutrality and dichotomy – and explores their applicability to the complex interplay between economic forces and military dynamics. In doing so, it challenges the conventional binary view of conflicts as either war or peace, emphasizing the nuanced gradations that emerge over time.
 The study highlights the significance of economic advantages in shaping decisions related to military conflicts and underscores the role of econometric forecasting as a critical factor in academic institutions navigating the indirect repercussions of hostilities. The article also presents a comprehensive examination of strategic interactions, introducing distinctions between moves, rounds, and plays in conflict scenarios.
 Drawing on recent research and publications, the article underscores the importance of understanding the economic principles governing the preservation of peace and forecasting the consequences of such decisions. It references seminal work by economists P. Romer, R. Lucas, R. Barro, I. Salla y Martin, and R. Levine, who laid the foundation for the study of endogenous economic development.
 The theories of trade and military conflict are two distinct branches in economic analysis and prediction. Trade theory is founded on contractual agreements and mutual benefits, while the military conflict theory centers on competition for dominance. It's important to recognize that various analytical methods exist for modeling equilibrium in such situations, whether they involve active hostilities or the coexistence of armed forces during economic stagnation due to anticipated conflicts.
 It becomes evident that the decision to initiate or de-escalate a military conflict is primarily driven by economic advantages, even in the domain of academic management. In this context, econometric forecasting techniques play a role in the economic activities of academic institutions, which may experience direct or indirect consequences of hostilities. This is because various sectors must compete for their survival amidst these dynamics.
 Purpose. The study's objectives include assessing the impact of military budgeting productivity on economic growth using economic and mathematical modeling techniques, with a focus on countries facing uncertainties related to hostilities, evolving budget and tax regulations, and inflation. The article adapts the models of J. Battis and T. Koeli to facilitate this analysis.
 Methods Macroeconomic Analyses, Economentric Analyses, Trend Analyses
 Results. Determining the optimal level of taxation to obtain the necessary income for the budgets of academic institutions in conditions of uncertainty in the conduct of hostilities.
 In conclusion, the study challenges classical economic doctrines by establishing a strong connection between military budget allocation and the real sectors of the economy. It underscores that a nation's economic growth is contingent upon the productivity and effectiveness of its military budgeting, even in a globalized world economic system. This study opens the door to further research in this interdisciplinary field.
 Keywords: Econometric forecasting, Academic management, Uncertainty, Hostilities, Economic modeling, Endogenous economic development, Academic institutions, Budgeting, Military conflicts, Financial impact, Economic growth, Strategic decision-making, Budget optimization, Risk assessment, Financial efficiency. Methods Macroeconomic Analyses, Economentric Analyses, Trend Analyses
 
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Supporting punishment via taxation in a structured population

Taxes are an essential and uniformly applied institution for maintaining modern societies. However, the levels of taxation remain an intensive debate topic among citizens. If each citizen contributes to common goals, a minimal tax would be sufficient to cover common expenses. However, this is only achievable at high cooperation level; hence, a larger tax bracket is required. A recent study demonstrated that if an appropriate tax partially covers the punishment of defectors, cooperation can be maintained above a critical level of the multiplication factor, characterizing the synergistic effect of common ventures. Motivated by real-life experiences, we revisited this model by assuming an interactive structure among competitors. All other model elements, including the key parameters characterizing the cost of punishment, fines, and tax level, remain unchanged. The aim was to determine how the spatiality of a population influences the competition of strategies when punishment is partly based on a uniform tax paid by all participants. This extension results in a more subtle system behavior in which different ways of coexistence can be observed, including dynamic pattern formation owing to cyclic dominance among competing strategies.

Target2: The Silent Bailout System That Keeps the Euro Afloat

Target2 is the Eurozone’s cross-border payment system, which is mandatory for the settlement of euro transactions involving Eurozone central banks. It is being used to save the Eurozone from imploding. A key underlying problem is that the Eurozone does not satisfy the economic conditions for being an Optimal Currency Area, i.e., a geographical area over which a single currency and monetary policy can operate on a sustainable, long-term basis. The different business cycles in the Eurozone, combined with poor labour and capital market flexibility, mean that systematic trade surpluses and deficits will build up because inter-regional exchange rates can no longer be changed. Surplus regions need to recycle the surpluses back into deficit regions via transfers to keep the Eurozone economies in balance. But the largest surplus country—Germany—refuses to formally accept that the European Union is a ‘transfer union’. However, deficit countries, including the largest of these—Italy—are using Target2 for this purpose. Target2 has become a giant credit card for Eurozone members that import more than they export to other members, but with two differences compared with normal credit card debt: neither the debt nor the interest that accrues on the debt ever needs to be repaid. Furthermore, the size of the deficits being built up is causing citizens in deficit countries to lose confidence in their banking systems, leading them to transfer their funds to banks in surplus countries. Target2 is also being used to facilitate this capital flight. However, these are not viable long-term solutions to systemic Eurozone trade imbalances and weakening national banking systems. There are only two realistic outcomes. The first is a full fiscal and political union, with Brussels determining the levels of tax and public expenditure in each member state—which has long been the objective of Europe’s political establishment. The second outcome is that the Eurozone breaks up.

Herding, taxpayer's rent seeking and endemic corruption

In an environment with extensive corruption where much of the population evades paying their full taxes due, we tackle the question of optimal taxation when constituencies with conflicting objectives (the poor and the rich) push tax policy in different directions. We think in terms of a government policy maker here called the tax administrator (TA) and rent-seeking lobbying efforts by poor and rich constituencies. We recognize the taxpayers’ inter-dependency as reflected in increased evasion likelihood when others are thought to be evading. Thus our modeling incorporates elements from the theory of information cascades (herding) into a standard model of tax evasion. The poor and rich undergo a rent-seeking contest seeking to influence the TA in setting policy so that their constituency is favored. The TA maximizes an objective function that is a weighted average of expected social welfare, their own interests, and investment in better tax administration. With these building blocks we examine the functioning of the economy. Our results include those that are expected, counterintuitive and surprising. For example, we learn that lower taxes on the rich does not mean the TA cares more about the public interest. Instead, it may result from the TA caring less about the public welfare of others in society, i.e., less about both the poor and the rich. Furthermore, with an increase in perceived inequality society's optimal tax rate rises. On the other hand, high tax levels lead to high herding and greater herding decreases investment by the poor and the rich attempting to affect the tax level set by the TA. Thus, a TA who only cares about their own self will enact lower tax levels than if they cared about others in the society.

What drives sustainable investing? Adoption determinants of sustainable investing exchange-traded funds in Europe

Despite the growing interest in various topics related to sustainable (ESG) investing, some issues remain understudied, such as the determinants of their utilization at the macro level. This paper contributes to the state of knowledge two-directionally. First, it shows the development of sustainable investing exchange-traded funds (ETFs) in European countries. Second, it traces the significant determinants of adopting sustainable investing/ESG ETFs in Europe. More specifically, we aim to determine which financial, technological, social or institutional factors have the most significant impact on the growth of levels and over-time dynamics of the sustainable investing ETFs. The empirical sample covers five European economies: France, Germany, Italy, Switzerland, and the United Kingdom and the period of the analysis is 2006–2020. Adopting panel regression analysis, we investigate twenty different variables that potentially impact the development of sustainable investing ETFs across examined countries. Our results confirm the positive effects of the development of insurance companies and pension funds for the assets of the ESG ETFs. Also, factors such as stock markets development, ICT adoption, financial access and literacy, and the prevalence of tertiary-level education demonstrate a positive impact on ESG ETFs. The role of the financial performance and tax levels resulted in being neutral, thus indicating the lesser importance of the financial motives in relation to the other factors. The results were mixed in the case of the mutual funds and institutional variables.

Impact of indirect taxes on CO2 emissions in the presence of institutional quality: evidence from a global panel data analysis

PurposeDespite the importance of tax policy in reducing energy consumption and carbon emissions, there is a dearth of research on the environmental impact of indirect taxes. This paper examines the impact of indirect taxes on carbon dioxide (CO2) emissions, with an emphasis on institutional quality.Design/methodology/approachThe study uses the Government Revenue Dataset (2021), comprising 143 countries, dividing into 114 developing and 29 developed countries, during the period between 1996 and 2019. The author adopts panel data techniques, with Driscoll–Kraay standard errors to account for the issue of cross-sectional dependence (CSD).FindingsThe results indicate that indirect tax revenues have a negative and significant impact on CO2 emissions for the total sample. The subsample analysis revealed that while indirect taxes reduce carbon emissions in developing countries, opposed results are reported for developed countries. This finding implies that most of the advanced countries have already reached a high level of taxes, at which carbon emissions increase as indirect tax increases further. Interestingly, the results revealed that institutional quality enhances the role of indirect taxes in mitigating carbon emissions for both developing and developed countries.Originality/valueTo the best of the authors' knowledge, this is the sole study using the newly developed tax data by the United Nations University, World Institute for Development Research (UNU-WIDER) to investigate the impact of indirect taxes on carbon emissions, with an emphasis on institutional quality. The existing literature focuses on specific taxes, like carbon taxes, with no comprehensive research on the link between indirect taxes and carbon emissions.

Pillar Two Implementation – Bill Submitted to Parliament

This note summarizes the Bill of Law Implementing Council Directive (EU) 2022/2523 on ensuring a global minimum level of taxation for multinational enterprise groups and large-scale domestic groups in the European Union, which was presented by the Luxembourg government on 4 August 2023, and amended on 13 November 2023. The authors examine the main features of the Bill and its amendments and focus on some key points.