Tax Ratio Research Articles

Die Finanzpolitik kann nicht alle entlasten

AbstractThe coming relief packages should be precisely targeted in the form of transfers for those on low incomes. In times of inflation, the efficiency of government fiscal policy is of particular importance. Additional spending projects should be critically examined accordingly. In the face of acute shortages, it may be plausible to postpone projects. Recent developments in commodity markets suggest that some shortages may not be permanent. The possibility that some of the calamities are temporary argues for not betting on new taxes now. An increase in the tax ratio that allows for a temporarily more progressive design of the tax and transfer system is already endogenous. To this end, however, the “cold progression” should not be dismantled (as has been customary in recent years), as this would probably constitute an expansionary impulse in itself in the coming year.

Optimizing Tax potential in Ethiopia

In designing a tax policy, governments often face when and how to mobilize revenues. Crucial to those questions include, are we already collecting more revenue than the economy can produce or not? The current study has precisely addressed this question in the case of Ethiopia. Tax effort prediction is made via an error correction model. The finding shows that tax effort, theoretically measured as the difference between tax revenue collected and tax potential is extremely low in the country. This problem becomes more complicated when GDP shows as a rather inverse predictor of tax potential, indicating massive work of tax base identification to enable tax ratio moves with the speed of GDP growth.

Analysis on the Income Tax Compliance Behavior of Muzaki at Lazismu Sragen

Introduction to The Problem: Zakat as a deduction of taxable income has become an issue that has attracted the attention of the public economy. The most obvious thing is that the low realization of zakat collection and tax ratios affect the welfare gap (distribution function) and public services received by the citizens (allocation function). On an extreme scale, non-compliance with zakat and tax may threaten social cohesion and legal authority. Purpose/Objective Study: This study aims to find out how zakat regulation as a deduction of taxable income affects muzaki's behavior to comply or not comply with tax obligations. Design/Methodology/Approach: The research design is empirical legal research with qualitative analysis. The primary source builds on focus group discussions (FGDs). Otherwise, secondary sources are collected through a literature study of primary, secondary, and tertiary legal materials. Findings: Zakat as a deduction of taxable income affects muzaki's behavior to comply with tax obligations. The zakat scheme as a deduction of taxable income greatly influences muzaki's behavior within the level of tax compliance, specifically the level of resistance to tax because the system is considered oppressive, to move up to the level of tax compliance trying to comply but having difficulty understanding tax. This significant change occurs because the Zakat scheme as a deduction of taxable income is able to eliminate the characteristic of “tax is conflicting with zakat” in the level of tax compliance resistance because the system is considered oppressive. Paper Type: Research Article.

Determinants of tax revenue in Indonesia with economic growth as a mediation variable

Tax revenue has an important role as the main source of state revenue. However, for several years, the realization of tax revenues has not been able to reach the target and the level of the tax ratio is still not ideal. This shows that tax revenue needs to be increased so that the factors that can affect tax revenue need to be analyzed. This study aims to examine the effect of corruption, government spending, and human development on tax revenues and the effect of economic growth in mediating these effects. The analysis was conducted on 10 provinces during 2010 to 2019 was selected using a purposive sampling technique and 100 observations were obtained. Multiple linear regression was used as a method to analyze the hypothesis. The results showed that (1) government spending, human development and economic growth had a positive effect on tax revenue, while corruption had no effect on tax revenue; (2) government spending and human development have a positive effect on economic growth, while corruption has no effect on economic growth; (3) economic growth mediates the effect of government spending and human development on tax revenues; (4) economic growth does not mediate the effect of corruption on tax revenues.

Cluster analysis of tax indicators in Europien countries

Global trends indicate that at the current stage of European countries’ integration, the processes of unification of taxation and tax administration, and the convergence and harmonization of tax systems are taking place. Therefore, for thorough studying of these phenomena, it is important to classify countries according to the parameters of fiscal systems and tax policy. Our analysis of the tax indicators of European countries on the main groups of taxes according to the methodology of ESA 2010 develops the research in this field. The analysis was carried out by clustering methods in order to identify common and different features in the tax systems of European countries. This study covers 30 European countries for the periods 2018 and 2020. This paper focuses on the analysis of three main indicators of tax revenues. According to the ESA 2010 methodology, these are taxes on production and imports (D.2), current taxes on income and property (D.5), and net social contributions (D.61). Cluster analysis of the tax-to-GDP ratio was performed using a hierarchical agglomerative method and the method of k-means using software R Studio and STATISTICA 7.0. As a result, 5 clusters have been obtained. They are characterized by the following average values: 1) the cluster with the lowest total tax-to-GDP ratio, where income taxes predominate; 2) the cluster with the highest total tax-to-GDP ratio, high tax ratio on income and property, and low social contributions; 3) the cluster with an average tax-to-GDP ratio and the largest social contributions; 4) the cluster with an average tax-to-GDP ratio and the predominance of taxes on production and import; 5) countries, where all analyzed tax groups have a roughly equal ratio to GDP. The classification carried out for 2020 data revealed some insignificant changes in the clusters’ composition. These changes can be considered as a result of the tax policy to counteract the effects of the pandemic.

Analisis Kinerja Keuangan Pemerintah Daerah Lingkup Provinsi Sulawesi Utara Tahun 2014 - 2020

This research is conducted based on Supreme Audit Agency’s (BPK) opinion on Local Government Financial Statement (LKPD) that is released anually and to observe the effect of BPK’s opinion has on local government financial performance in North Sulawesi Province which consists of 15 municipalities/cities and 1 provincical government. In addition to BPK’s opinion, the author takes some variabels in consideration to analyze factors affecting local government financial performance in order to find out problems faced by local government. The dependent variable used in this research is Efficiency Ratio that reflects the local government financial performance. This research uses Least Square Dummy Variable (LSDV) regression method with selected fixed effect model. It is found that, some variables that significantly affect financial performance of local government are government expenditures, independent financing, BPK’s opinion, tax ratio, and Indonesia Net Budget Financing (SILPA).

Analysis on the Steady Growth Effect of China’s Fiscal Policy from a Dynamic Perspective

Under the goal of a “new development pattern”, it is of great practical significance to accurately identify the economic growth effect of fiscal and tax policies. This paper constructs a TVP-FAVAR model to measure the economic effects of China’s fiscal and tax policies at the aggregate and structural levels. The results show that the reduction in total tax has a positive effect on real variables such as output and consumption; especially at the present stage, the promotion effect of total tax reduction on economic growth is relatively strong, but the stimulation effect on price is relatively weak. Further, the tax structure in which the ratio of direct tax to total tax increases and the ratio of indirect tax to total tax decreases is more conducive to the increase in output and consumption, and will not strongly stimulate the rise of price level. Therefore, at this stage, China should continue to vigorously implement the tax reduction policy and ensure the continuity of the tax reduction policy. At the same time, we should continue to optimize the tax structure and give better play to the regulatory role of fiscal and tax policies in income redistribution, so as to achieve the goal that fiscal and tax policies help build a “new development pattern” and promote high-quality economic development.

Optimal Decisions and Implementation Efficiency of the Extended Producer Responsibility System for E-Waste under Take-Back Legislations

The collection and reuse of the e-wastes have attracted increasing attention all over the world. In order to incentivize the producer to collect and recover the e-waste, more and more countries have formulated the take-back legislation with the economic or administrative instruments based on the spirit of extended producer responsibility (EPR). Facing two different types of policy instruments (economic or administrative instrument), how the take-back legislation affects the collection and reuse of the e-waste and how to ensure the efficiencies of the two types of take-back legislation have attracted the public’s attention. Therefore, this paper establishes a stylized model consisting of a monopoly manufacturer who is responsible for collection and remanufacturing under two different types of the take-back legislation. The manufacturer’s optimal production, collection, remanufacturing decisions, and optimal profit are derived using Karush–Kuhn–Tucker (KKT) conditions. Sensitivity analysis shows that stricter mandated collection rate hurts the manufacturer’s profit, but the effects of the government’s subsidy and tax on the manufacturer’s optimal decisions rely on the cost of the new product. The firm needs to adjust the cost of the new products corresponding to the specific subsidy and tax. Finally, a neutral fiscal policy is proposed to determine the government’s optimal subsidy and tax in order to ensure the consistency of the efficiencies of the two types of take-back legislation. The government should set that the ratio of the optimal tax and subsidy under the neutral fiscal policy is exactly consistent with the mandatory collection target. This policy aims to guide the manufacturer’s voluntary collection rate to meet the government’s mandated collection target and thus change the mandatory collection mode to the voluntary collection mode.

Tax structure and corporate tax compliance: evidence from China

This article empirically examines the impact of tax structure on corporate tax compliance using Chinese industrial enterprise database and prefectural data. The results show that relying more on indirect taxes tends to decrease corporate tax compliance, while increasing the ratio of direct taxes of total tax revenues significantly enhances corporate tax compliance. To overcome endogeneity, the robustness is tested using instrumental variables and other robustness checks, such as changing variables and changing time windows. Mechanism analysis shows that it is conducive to reducing the complexity of the tax system, improving the quality of governance, and enhancing taxation efforts. This article examines the impact of tax system on corporate taxation behaviour from the perspective of the tax structure, which also provides microscopic empirical evidence for tax reform in China.

A Simulation of Water Conservation Policy Impacts on Long-Range Climate Change: A CGE Analysis

Abstract The study of “water-energy-carbon” has always been an important theme in natural science. With the concern of climate change, the relationship between water and carbon has also attracted attention. China has published several policies for the water conservation, and it has begun to explore the policy transform of the water fee into water tax, which will become a key economic measure for water management. In the background of the carbon reduction, the policy may influence both the water system and the carbon system. This study mainly analyzes how future water tax affects the climate change in China by using the macroeconomic model named the computable general equilibrium model (CGE model). Two scenarios with different tax ratios have been set, and policies are implemented among different sectors. The policy will not only directly impact these industrial sectors but also indirectly impact other sectors through the economic system, which will finally do tiny contribution to the long-term climate change. The working mechanism was discussed, and policy implications were proposed at last. Firstly, China should pay attention to the impacts of macropolicies on CO2 reduction as it has set the goal of peaking carbon emissions and achieving carbon neutrality. Secondly, more study needs be carried out for the mechanisms of the “water-energy-carbon” process from the macroeconomic perspective for combing the climate change.

PENGARUH INKLUSI KEUANGAN TERHADAP RASIO PAJAK DI NEGARA BERPENDAPATAN RENDAH DAN MENENGAH

This study aims to analyze the influence of financial inclusion towards tax ratio in the low and middle income countries. A financially included society could be a determinant factor for a higher level of tax ratio through a higher capability to pay tax and lower size of shadow economy. The sample used in this study was 54 low and middle income countries for dataset in 2011, 2014, and 2017. The method of hypothesis testing is done by multiple regression analysis. The results in this study show that financial inclusion has significant and positive influence on tax ratio in the low and middle income countries.

Faktor – faktor yang berpengaruh terhadap agresivitas pajak

This study looks at the phenomenon of the tax ratio which shows the government's ability to collect tax revenues. The higher the tax ratio of a country, the better the performance of that country's tax collection. The company carries out aggressive tax planning to save its taxes. This tax savings is known as tax aggressiveness. Tax aggressiveness is an act of manipulating tax able income by a company through tax planning actions, either using legally or illegally classified methods. Another phenomenon is tax avoidance in Indonesia, which is believed to reach Rp 110 trillion per year. Most business entities own about 80 percent, the rest are tax payers for individuals. The purpose of this study was to examine and analyze the effect of Profitability (ROA), Liquidity (CR), Leverage (DAR) and Company Size (SIZE) on Tax Aggressiveness. The samplingmethodused in this research is purposive sampling and obtained a sample of 322 companies. The population in this study were all manufacturingcompanies listed on the Indonesia Stock Exchange (IDX) from 2018 to 2020. The data analysis technique used in this study was multiple linear regression analysis. The results of this study indicate that liquidity, leverage and also company size have a negative and significant effect on tax aggressiveness, while the results of research on profitability do not have a significant effect on tax aggressiveness.

Privatising, liberalising and dividing a welfare state without affecting universality? Debunking the myths surrounding the rapid rise of private health insurance in Sweden.

The privatisation of provision and the emerging privatisation of funding, manifested in the rapid rise of private health insurance, are the most obvious signs that the universal, Swedish health system is gradually weakened. Meanwhile, the private welfare industry creates a neoliberal Newspeak where the burdening effects of the private insurance system on public healthcare are said to be unburdening, and where every step away from the principles of a universal welfare model is said to be in line with the principles of a universal welfare model. The language spoken by the private welfare industry spills over into authorities, journalists and scholars. In this article, I discuss, problematise and partially reject two research questions - Does VHI unburden the public health care system? and Are VHI holders less supportive of funding public health care? - where the authors fail to place development in the context of increased inequality and declining tax ratio, and where they use the welfare industry's definitions invented to blur the consequences of a parallel health system.

ANALISIS PENERAPAN TAX AMNESTY (PENGAMPUNAN PAJAK) TERHADAP RASIO PAJAK SECARA NASIONAL DAN SECARA REGIONAL (KABUPATEN DAN KOTA TANGERANG)

The research for the 2020/2021 academic year is aimed at the application of tax amnesty (tax forgiveness) to tax ratios nationally and at KPP Pratama Tangerang Timur, KPP Pratama Kosambi and KPP Pratama Tigaraksa (KPP Pratama in Tangerang Regency and Tangerang City). Tax Amnesty is a policy in the field of taxation set by the government with the approval of the House of Representatives, this policy provides forgiveness for mistakes that have been made by taxpayers in carrying out their tax obligations in the field of Income Tax (PPh), Value Added Tax of Goods and Services (PPN), and Luxury Goods Sales tax (PPnBM) until the 2015 Fiscal Year. The 2016 Tax Amnesty Policy, which among others aims to increase tax revenues and add to the taxation database, as well as an increase in the tax ratio, therefore, to see the results or impacts, it is necessary to assess or observe the condition of tax revenues, taxation databases and GDP (Domestic Product). Gross) before and after the effective period of the Tax Amnesty policy. This research aims to determine the growth of the tax ratio before and after the 2016 tax amnesty policy nationally and regionally and compare the results. This research method went through several stages, including collecting data on tax revenues and gross domestic product nationally in the period before and after the implementation of the 2016 tax amnesty policy and then calculating the tax ratio. Furthermore, the same steps are carried out regionally (East Tangerang KPP Pratama, Kosambi KPP Pratama and Tigaraksa KPP Pratama which are included in the Pratama KPP in Tangerang Regency and Tangerang City)). And then compare the results between national and regional to find out how the growth of the tax ratio both nationally and regionally after the tax amnesty policy

Effect of Inflation, Economic Growth, and Tax Rates on Tax Ratios in Asian Countries in the Period 2015-2020

This research was conducted to analyze the Effect of Inflation, Economic Growth, and Tax Rates on Tax Ratios in ASEAN Countries either partially or simultaneously. The sampling method is purposive sampling. This study used 7 ASEAN countries with a sample number of 42 data. This type of data is secondary data sourced from World Bank and OECD data. The data analysis method used is multiple linear regression analysis. The findings of this study are based on the results of the t-test, it can be concluded that partial inflation has a negative effect on the tax ratio in ASEAN countries in the period 2015-2020. Partial economic growth and tax rates have no effect on the tax ratio in ASEAN Countries in the period 2015-2020. Based on the results of the F test it was concluded that Inflation, Economic Growth, and Tax Rates simultaneously have a significant effect on the tax ratio in ASEAN Countries in the period 2015-2020.

Effect of Inflation, Economic Growth, and Tax Rates on Tax Ratios in Asian Countries in the Period 2015-2020

Effect of Inflation, Economic Growth, and Tax Rates on Tax Ratios in Asian Countries in the Period 2015-2020

PENGARUH INSENTIF PAJAK, KUALITAS PELAYANAN, DAN PEMAHAMAN PERPAJAKAN TERHADAP KEPATUHAN WAJIB PAJAK UMKM

Tax revenue has not been maximized and the tax ratio is still low because the level of compliance of MSME taxpayers has decreased. In the conditions of the Covid-19 pandemic, Direktorat Jenderal Pajak provides tax incentives to maintain compliance during the Covid-19 pandemic. The purpose of this study was to determine the effect of tax incentives, quality of service, and taxation understanding on MSME taxpayer compliance. The type of data used in this study is primary data obtained through a questionnaire. The sample in this study was based on the accidental sampling method with a sample of 100 MSME taxpayers registered at KPP Pratama Badung Selatan. The statistical test used to test the hypothesis is Structural Equation Modeling (SEM) based on Partial Least Square (PLS) with SmartPLS 3.0 media. The results of this study indicate that tax incentives, quality of service, and taxation understanding have a positive and significant impact on MSME taxpayer compliance.

Relationship on Timeliness of SPT Reporting and Reported Income in Accordance with Applicable Provisions on Taxpayer Compliance

Compliance is one of the important factors in increasing revenue from the tax sector. Indonesia’s low tax ratio is an indicator that there are still many taxpayers who do not comply with tax payments and reporting. The study examines how the relationship between the timeliness of SPT reporting and reported income in accordance with applicable regulations on taxpayer compliance. The method is causality research method. The population are registered taxpayers at the KPP North Malang area. The sampling uses convenience sampling method with a total of 75 respondents. The results of hypothesis testing with multiple linear analysis show that together there is a positive relationship between the timeliness of reporting tax returns and income reported in accordance with applicable regulations on taxpayer compliance. The results of the Spearman correlation test show that there is a significant relationship between the timeliness of reporting tax returns with taxpayer compliance and there is a significant relationship between reported income in accordance with applicable regulations and taxpayer compliance.

Tax Revenue and the Economy of Sub-Saharan Africa: A Systemic Analysis

This paper examines the role of tax revenue in engineering economic growth in the Sub-Saharan Africa (SSA) region, analyzing data for 12 regional countries obtained from secondary sources such as the OECD database and World Bank World Development Indicators (WDI), covering the period 2005-2020, and analyzed using the fixed effect method, which accounts for possible heterogeneity among the SSA countries. Economic growth was measured using real gross domestic product, and tax revenue by ratio of tax revenue to GDP. The study controlled for other economic growth drivers such as trade openness, foreign direct investment, exchange rate, domestic investment and money supply. The salient findings indicate that taxation hampers the economic growth of SSA countries, and that domestic investment and favorable exchange rates promote economic growth in the SSA region, but domestic investment has a greater stimulating impact. Based on these findings, we recommend that governments of the SSA countries should implement tax cuts or expand the tax base of the local economy in order to reduce the deadweight loss of increased taxation.

The Relationship between Fiscal Policy and Civil Liberty on Per capita GDP in Indonesia during 1980-2018

ABSTRACT
 Fiscal policy has a contribution to community welfare. Many empirical findings explained the relationship between the fiscal component and per capita income. In addition, civil liberty is a driving factor in economic life. Thus, this study estimated the relationship between fiscal policy and civil liberty on Per capita GDP in Indonesia during 1980-2018. The VAR and Bayesian VAR estimation models were selected and relevant to the a-theoretic economic variables. The empirical findings showed that the tax ratio contributed significantly to inhibit the increase in Per capita GDP, barriers to parties resulted in damaging Per capita GDP, but access to justice improved Per capita GDP. Thus, the Indonesian government should be able to encourage fiscal allocations for strategic and productive programs. In addition, the Indonesian government should also protect and guarantee civil liberties in accordance with applicable laws and regulations.
 Key words: government expenditure, tax ratio, external debt, civil liberty, Per capita GDP
 JEL Classification: E01, E02, E62, H63