Tax Structure Research Articles

A comparison of fiscal illusion for brazilain states generated by tax structure complexity

A comparison of fiscal illusion for brazilain states generated by tax structure complexity

Options for modifying UK alcohol and tobacco tax: A rapid scoping review of the evidence over the period 1997-2018.

Increased taxation is recognised worldwide as one of the most effective interventions for decreasing tobacco and harmful alcohol use, with many variations of policy options available. This rapid scoping review was part of a NIHR-funded project ('SYNTAX' 16/105/26) and was undertaken during 2018 to inform interviews to be conducted with UK public health stakeholders with expertise in alcohol and tobacco pricing policy. Objectives: To synthesise evidence and debates on current and potential alcohol and tobacco taxation options for the UK, and report on the underlying objectives, evidence of effects and mediating factors. Eligibility criteria: Peer-reviewed and grey literature; published 1997-2018; English language; UK-focused; include taxation interventions for alcohol, tobacco, or both. Sources of evidence: PubMed, Scopus, Cochrane Library, Google, stakeholder and colleague recommendations. Excel spreadsheet structured using PICO framework, recording source characteristics and content. Ninety-one sources qualified for inclusion: 49 alcohol, 36 tobacco, 6 both. Analysis identified four policy themes: changes to excise duty within existing tax structures, structural reforms, industry measures, and hypothecation of tax revenue for public benefits. For alcohol, policy options focused on raising the price of cheap, high-strength alcohol. For tobacco, policy options focused on raising the price of all tobacco products, especially the cheapest products, which are hand-rolling tobacco. For alcohol and tobacco, there were options such as levies that take money from the industries to help reduce the societal costs of their products. Due to the perceived social and economic importance of alcohol in contrast to tobacco, policy options also discussed supporting pubs and small breweries. This review has identified a set of tax policy options for tobacco and alcohol, their objectives, evidence of effects and related mediating factors. The differences between alcohol and tobacco tax policy options and debates suggest an opportunity for cross-substance policy learning.

Policy Forum: Subnational Taxation—A Comparison of the Tax Systems of Brazil and Canada

Brazil and Canada are among the 25 or so countries with a federal form of government, and two of only a few countries that grant taxation powers to their subnational governments. In addition to federalism, two other key similarities between Brazil and Canada are the size of their gross domestic product and their geographical scale. This article compares the countries' tax structures and describes Brazil's subnational taxation system, including its state and municipal subnational taxes.

Health and economic impacts of introducing specific excise tax to waterpipe tobacco in Egypt: a simulation model of simple and mixed tax policy approaches

IntroductionWaterpipe tobacco is taxed at half the rate of cigarettes in Egypt and, unlike cigarettes, does not have a specific excise component. We aimed to simulate the introduction of a...

Health taxes in Indonesia: a review of policy debates on the tobacco, alcoholic beverages and sugar-sweetened beverage taxes in the media

IntroductionOne of the WHO’s ‘best buys’ in controlling non-communicable diseases and their risk factors is to impose health taxes. While the Indonesian political process inhibits the implementation of health tax...

Social Security and the Fairness of the US Tax System

There have been recurring arguments over time that taxes paid by wage earners for Social Security are regressive and hence unfair. The argument is further made that if these taxes are included in the calculation of the overall income tax burden, they make the income tax in the United States regressive (and hence unfair) as well. The purpose of this paper is to address both of those arguments: whether it is appropriate to combine it with the incometax when assessing progressivity, and whether the Social Security system itself is unfair. Much of the literature on taxation –popular, political, and academic –makes repeated references to whether a given tax structure is “fair” or not. Fairness in taxation, although never clearly defined on an objectively measurable basis, is generally thought to be based at least on a progressive tax structure. A critical question in the current discussion is whether this progressivity is in all cases “fair” and desirable, irrespective of the nature of the tax being imposed.This paper argues that combining general income taxes with Social Security taxes in order to assess the overall “fairness” of the tax structure is inappropriate and that the Social Security program imposes unfair taxes on some taxpayers.

The Impact of Goods and Services Tax on Sustainability in the Indian Handicraft Sector

The implementation of the Goods and Services Tax (GST) in India has significantly influenced the Indian handicraft sector, integral to India’s cultural heritage and economy. This mini-review explores GST's multifaceted role in fostering economic, social, and environmental sustainability within this sector. It delves into GST’s implications on various aspects of the handicraft sector, including pricing, production, and marketing strategies, and examines the related governmental strategies and policies. Utilizing secondary data, this review reveals how GST has simplified the tax structure, integrated state economies, and created a conducive business environment, promoting sustainable development and innovation in the sector. It underscores the strategic importance of GST in aiding sustainable growth by formalizing businesses, enhancing job opportunities, and encouraging sustainable practices in the handicraft sector. The review also highlights the need for more exhaustive research, incorporating primary data, to gain deeper insights into GST's practical implications on sustainability in the Indian handicrafts sector.

Optimal portfolio choice of couples with tax-deferred accounts and survival-contingent products

Financial products for retirement planning generally have complex taxation structures and death conditions. In particular, tax-deferred accounts (TDAs) can provide tax-sheltered wealth accumulation by deferring taxes, even with the same financial products. Additionally, various survival-contingent products (SCPs), such as annuity products and life insurance contracts, have different payouts for policyholders. In this study, considering both the TDA and SCPs, we formulate and solve a couple’s lifetime portfolio choice problem using a multistage stochastic programming model. Owing to its high-dimensional state space and lifelong planning periods, stochastic dual dynamic programming (SDDP) was used to solve this problem. We find some interesting results; when both the TDA and SCPs are available, the portfolio is less concentrated in annuity holdings than when the TDA is unavailable. Moreover, the couple ends their contribution to the TA earlier than when SCPs are unavailable.

FBBVA Lecture 2023. The Importance of Modeling Income Taxes over Time: U.S. Reforms and Outcomes

Abstract The structure of taxes and their burden have undergone large and frequent changes over time. We provide a brief history of U.S. federal income tax reform since the 1960s, calculate effective federal income tax rates for each wave of the Panel Study of Income Dynamics, and discuss how effective taxation changed from 1969 to 2016. We show that most tax regimes are short-lived and that the variation in taxes over time and across groups is large. We also use an estimated dynamic model of couples and singles to show that the various tax regimes that we estimate imply very different labor market and saving behavior. These findings stress the importance of studying and modeling tax changes over time and across groups.

ASSESSING THE LONG-TERM EFFECTS OF GST ON CHOSEN SECTORS IN THE INDIAN ECONOMY

The Goods and Services Tax (GST) has been a transformative tax reform in India, ushering in a unified and integrated tax structure for goods and services across the nation. This paper delves into the profound and diverse impacts of GST on key sectors, including Automobile, Agriculture, Financial, Infrastructure, and Hospitality. Drawing upon a rich tapestry of literature and quantitative data analysis, the study unveils nuanced sector-specific dynamics. The agriculture sector, following GST implementation, experienced mixed growth rates but showcased remarkable increases in GDP contribution, suggesting significant growth potential. The automobile sector maintained consistent GDP contributions, while the financial sector exhibited steady growth, Although with fluctuations in growth rates. The infrastructure sector faced declining growth rates, reflecting complex interactions with GST and broader economic reforms. The hospitality sector displayed consistent growth rates and an expanding role in the economy. The studys findings underscore the importance of sector-specific responses to GST, highlighting the need for tailored adaptation strategies. Recommendations include enhanced GST awareness and training programs, specialized impact assessment tools, and simplified compliance platforms. This study contributes to a comprehensive understanding of how GST has shaped various sectors, ultimately contributing to Indias economic evolution. KEYWORDS: Goods and Services Tax (GST), Tax Reform, Indian Economy, Sector-Specific Impact, Agriculture Sector, Automobile Sector, Financial Sector, Infrastructure Sector, Hospitality Sector, GDP Contribution, Growth Rates, Capital Investment, Sectoral Resilience, Compliance, Economic Evolution.

Tax structure and its influence on the collection of tax revenues in Bolivia, Chile and Peru 2002-2022

Tax structure and its influence on the collection of tax revenues in Bolivia, Chile and Peru 2002-2022

Analysis of the Share of Corporate Property Tax in the Structure of Tax Revenues by Regions and Economic Activities

The subject of the study is the revenues from the corporate property tax in the context of types of economic activity and regions. The purpose of the study is to determine the role of corporate property tax in the structure of tax revenues in terms of economic activity to identify areas for potential growth of revenues from this tax and determine the fiscal and economic consequences of the transition to the cadastral valuation of real estate with the appropriate development of proposals to improve the taxation of real estate. The relevance of the research is due to the fact that the article is devoted to a little researched topic — analysis of property taxation in the Russian Federation in the economic activity context. The main method of research is the calculation of indicators characterizing the structure and dynamics of the corporate property tax and other property taxes, analysis and synthesis of the obtained results and their inter-sectoral comparison. As a result, a comprehensive view of the situation with the tax on the property of organizations in the context of economic activity is presented, which serves as a basis for finding bottlenecks in this part, identifying the factors that hinder the expansion of property taxation and other promising areas for research in this area. The interpretation of the obtained results in terms of the role of corporate property tax and other property taxes at different levels of the budget system should be attributed to the main conclusions. The cross-section allowed us to identify points for the potential growth of tax revenues from the corporate property tax in terms of objects, for which the tax base is the cadastral value.

Households food consumption pattern in Pakistan: Evidence from recent household integrated economic survey

The analysis of food consumption pattern is a primary concern of any developing country because it is related with food security. Pakistan is one of the emerging nations of the developing world.Due to the similarities and differences in households' food consumption behavior, income distribution, the effects of alternative tax structures, cost-benefit analyses, and the choice of cost of living index, the study of households' food consumption pattern is crucial for a developing nation like Pakistan. Furthermore, for Pakistan's food security in the present and the future, an analysis of food consumption pattern is crucial. The main objective of this study is to analyze the households' food consumption pattern. Linear Approximation Almost Ideal Demand System (LA/AIDS) is applied using data from Household Integrated Economic Survey (HIES) for the year 2018–19. This study makes a significant contribution by estimating household age composition elasticities, which were absent from earlier studies. Results from the income elasticities reveal that milk, meat, and fruits are luxuries food items. Similarly, on the basis of inelastic income elasticities we declared cereals, pulses, vegetables, sugar, and ghee as necessity food items. Results from the compensated own price elasticities show that the eight food commodity groups have inelastic own-price elasticities. This implies that these food commodities are integral food items of household diet. Results from the compensated cross-price elasticities shows that cereals and pulses, cereals and vegetables, pulses and vegetables, milk and fruits, meat and fruits, and milk and ghee are gross substitutes. On the other hand, pulses and meat, pulses and fruits, and ghee and meat are gross complements. According to the findings of the household age composition elasticities, adding children to a household significantly increases its sugar consumption while significantly reducing its fruit consumption. Any increase in the size of the household by an adolescent, adult, or a person in their middle age results in a significant increase in the consumption of cereals and a significant drop in the consumption of fruits. Finally, any increase in the size of the households brought about by an elder resulted in a significant rise in the consumption of cereals and a significant drop in the consumption of vegetables.

ENVIRONMENTAL TAXATION IN THE CONCEPT OF SOCIAL RESPONSIBILITY OF CITIZENS

The article is devoted to the study of the impact of humanity on the natural environment and the justification of the sources of the formation of financial resources for the environmental purposes in the context of social responsibility of citizens. It was established that the existing «consumer» system of human interaction with the natural environment is destructive for the noosphere. It was substantiated that the development of humanity and the consequences of its life activities are a key factor in the growth of negative anthropogenic impact on the environment. It was found that the ecological footprint of a person depends on the level of social well-being and population size. The relationship between the ecological and economic development of the country and its impact on the environment was reflected. The dynamics of expenses of the consolidated budget of Ukraine for the protection of the natural environment were presented. The main reasons and consequences of the change in the «plane» of common interests of man, nature and the economy in the process of human evolution have been established. The volume of emissions of polluting substances into the atmospheric air by households in Ukraine was studied. It was established that the system of environmental payments in Ukraine, in connection with the growing anthropogenic impact on the environment and, accordingly, its inhabitants, needs some optimization. The nature of the environmental tax has been clarified, the history of its emergence and the transformation of the content of this category have been investigated. It was established that the system of environmental taxation in Ukraine is ineffective and needs to be optimized, especially in the context of growing social responsibility of citizens in the conditions of increasing anthropogenic impact on the environment. The proposed changes in taxation of producers of environmentally hazardous products and traditional energy resources, as well as their consumers, were outlined. The structure of environmental tax in the context of social responsibility of citizens was proposed. The allocation of funds for environmental purposes was substantiated with an emphasis on the local budgets. An improved model of human «interaction» with the surrounding natural environment was proposed.

Factors influencing voluntary tax compliance of self-employed individuals in Davao city

Most self-employed taxpayers, who are exempted from third-party reporting, is being evaded. Compared to employees and corporations, self-employed have a low percentage of compliance due to government regulation focusing more on large taxpayers, resulting in fiscal imbalance. Thus, this study aims to determine the significant influence of the tax behavior factors on the tax compliance status of self-employed individuals in Davao City. The study uses descriptive-correlational method and adapted a modified questionnaire to collect data from 180 self-employed taxpayers. Findings reveal that the level of four indicators: personal, institutional, economic, and social are high than the expected level. It also shows that the level of tax compliance in terms of administration and submitting tax returns are found to be tax compliant most of the time. Using the multiple regression analysis, only institutional and social factors significantly influence tax compliance. It is recommended that the government should further strengthen the tax authority's efficiency and effectiveness while making the tax system equitable. The researchers also suggest tax forms must be convenient and tax structure must be fair and just to likely increase the number of tax returns and ensure the favorable attitude of self-employed individuals towards taxation.

GST IN INDIA: A KEY ECONOMIC REFORM

This study provides an overview of India's historical GST and pre-GST tax structures. India's most significant tax reform is finally in place, based on the concept of "one nation, one market, and one tax. The Goods and Services Tax (GST) replaced several indirect taxes such as excise duty, service tax, supplementary customs duty, surcharge, state level value added tax and octroi which were levied on various goods. After more than two decades of debate, Prime Minister and Finance Minister of India sh. Narendra Modi and Arun Jaitley respectively, have passed the GST Bill, which will go into effect on July 1, 2017. GST has helped a lot to remove double taxation or tax cascading effect. The GST regime includes four taxation rates: 5 percent, 12 percent, 18 percent and 28 percent. Certain products and services are tax-free. Manufacturing and exports are expected to benefit under the GST regime. This will result in more employment and economic prosperity in India.

The state budget of Ukraine: Diagnostics in the context of martial law

At the current stage of development of a market economy, the efficiency of the state depends on the quality of budgeting and execution, as it is the main instrument for mobilising and spending public resources. The purpose of this study was to diagnose the revenues and expenditures of the State Budget of Ukraine under martial law, to identify the main problems that impede effective budget formation and execution, and to provide recommendations on how to eliminate them. The study used empirical, theoretical, and statistical research methods, namely description and comparison; synthesis, analysis, and generalisation. The paper examined the essence of the state budget according to the opinions of foreign and Ukrainian researchers. Based on the statistical data, the study described the current state of the state budget and analysed the dynamics of budget revenues and expenditures in 2018-2022. The structure of tax and non-tax revenues to the state budget was investigated. The structure of the state budget expenditures was analysed in terms of economic and functional classification. The budget deficit was analysed. The study highlighted the main problems related to the preparation and execution of the state budget, namely: military operations in the country leading to capital outflows; a decrease in the growth rate of the gross domestic product and a decline in production; insufficient filling of the reserve fund; an increase in tax rates leading to tax evasion by business entities; instability of the national currency; lack of an effective strategy for budget preparation and execution; imperfect control over the implementation of budget programmes. The paper offers recommendations on how to overcome these problems and promote optimisation of the revenue and expenditure sides of the state budget. The results of the study are of practical importance, since it is based on the analysis of the state budget indicators that the state of the budget is determined and ways to balance the revenues and expenditures of the State Budget of Ukraine are identified

The elite, inequality and the emergence of progressive taxation

This paper explores theoretically the role of the ruling elites in the rise of progressive taxation in Western countries in the early 20th century. We focus on their interaction with the level of inequality between the elites and other citizens. We analyse a stylized political economy dynamic model where (wealthy) elite make a decision on the taxes to be paid by non-elite (poorer) citizens and by themselves. A fraction of citizens are fiscal-reciprocators: they experience positive (negative) reciprocity under a progressive (regressive) tax system. This proportion of citizens evolves over time according to their relative payoff compared to materialist citizens. We show that the choice of tax structure depends on the value for the elite of the public good generated by tax revenues, the proportion of fiscal-reciprocators and on the level of inequality between elite and citizen incomes. Our results show a dynamic complementarity between the level of reciprocity in society and tax progressivity. Indeed, this complementarity only operates if inequality is sufficiently low. In this case a progressive tax culture will be achieved, otherwise a regressive tax culture will prevail.

THE EFFECT OF DIRECT AND INDIRECT TAXES ON ECONOMIC GROWTH: EVIDENCE FROM NIGERIA

Aim/Purpose: The tax structure and reforms that could give the optimal benefit is not always easy to determine, this is responsible for different tax laws, structures and reforms that are rather harmful to the economic growth. Therefore, the study examines the effect of direct and indirect taxes on economic growth: evidence from Nigeria. Design/methodology/approach: The study adopted Ex-Post Facto research design. Secondary data was collected from Central Bank Statistical Bulletin between 1995 and 2021. Descriptive statistics, ARDL regression analysis, and post estimation tests were used to analyzed the data. Findings: The study revealed that direct tax (LPPT & LCIT) had significant negative effect on economic growth. It also revealed that indirect tax (LVAT) had positive and significant effect on economic growth in Nigeria while LCED was found insignificant. The study therefore concluded that both direct and indirect taxes had significant effects on economic growth. Research Implications/limitations: Based on the findings, the study recommended that Value Added Tax(LVAT) should be encouraged such that more goods are brought into the VAT list in order to expand the tax net in Nigeria. Meanwhile, excise duties on local manufacturing firm sourcing for raw materials abroad should not be excessive to prevent local firms’ crowd out. The research is limited by the data available to the researcher. Originality/value/contribution: unlike some other studies which say otherwise, this study contributes to the literature by establishing that both direct and indirect taxes can contribute positively to economic growth in Nigeria if properly configured, monitored and controlled. KEYWORDS: Direct Taxes, Indirect Taxes, Economic Growth, Valued Added Tax (VAT), Custom and Excise duty (CED).

Tax Structure Implications on Exchange Rate and Infrastructural Development in Nigeria

The study examined the relationship between tax structure and exchange rate, and capital expenditure using secondary data obtained from Central bank of Nigeria and Federal inland revenue annual bulletin for the period 1994 to 2022 using multiple regression and auto regressive distributive lag. Tax structure was divided into direct and indirect tax consisting of PPT, CIT and VAT while the dependent variable was proxied by exchange rate and capital expenditure. Unit root test for stationarity was conducted using Augmented Dickey Fuller and Kwiatkowski Phillips Schmidt Findings show that in the short run the coefficients of the tax structure variables passed the significance test at the 5 percent level indicating that tax revenues critically influence short run changes in capital expenditure. The coefficients of current PPT, current CIT and complete VAT are all positive, which show that all forms of taxes promote capital spending by government in Nigeria in the short run. Thus, increasing tax revenues will immediately deliver positive impacts on the budgetary provisions for capital spending in Nigeria. The study also found that capital expenditure improves exchange rate, the positive impact of tax revenues on short run capital expenditure confirms that taxes have significant indirect impact on short run macroeconomic performance in Nigeria. The long run results also report interesting outcomes The coefficients of the two direct tax components are significant at the 5 percent level, while that of VAT failed the test at the 5 percent level. This result shows that while PPT and CIT significantly influence capital expenditures in Nigeria, VAT has no significant impact. It also suggests that VAT does not exert indirect long run effects on macroeconomic performance through the capital expenditure channel. The coefficient of CIT is however negative, indicating that increasing CIT tends to reduce capital expenditures in Nigeria. On the other hand, the coefficient of PPT is positive which indicates that only PPT tends to directly improve capital expenditure or indirect improve long run macroeconomic performance through the channel of capital expenditure in Nigeria. The coefficient of public debt failed the significance test in the long run estimates, while the coefficient of exchange rate is significant at the 5 percent level and also possesses a negative sign. This implies that in the long run, exchange rate depreciation tends to limit capital expenditures in Nigeria. In particular every one percent rise in CIT was found to be consistent with a 0.877 percent rise in VAT, while a percent rise in PPT is accompanied by an increase in CIT by 0.93 percentage point. The relationship was found to be strong in Nigeria and also suggests that tax revenue in Nigeria is linked. the study found that only direct taxes led to improvement in exchange rate in the long run. This implies that direct taxes may be more effective in maintaining macroeconomic stability in Nigeria than application of indirect taxes. increases in indirect taxes tend to produce external effects that do not fully guarantee improvements in macroeconomic in Nigeria. direct tax component only improves exchange rate. Indeed, it was found that CIT revenues essentially lead to reduction in capital expenditure in the long run in Nigeria. That both PPT and CIT have significant negative impacts on exchange rate in the long run in Nigeria, indicating only the direct component of the tax structure in Nigeria significantly enhances exchange rate performance in Nigeria over time, while the effect of indirect tax components is insignificant. That only PPT has a significant indirect or channeled impact on macroeconomic performance through the capital expenditure in Nigeria. We recommend that government should pursue policies and programs that would help ensure exchange rate stability and boost local production for both consumption and export. In addition, a holistic program of economic reforms is important to complement the exchange rate policy and stimulate economic growth