Tax Reform Research Articles

‘Diocletian oppressed the inhabitants of Paneas’ (ySheb. 9:2): A New Tetrarchic boundary stone from Abel Beth Maacah

ABSTRACT Excavators of tell Abel Beth Maacah in northern Israel uncovered a Tetrarchic boundary stone reused as a cover for a Mamluk-period grave. The inscription mentions a hitherto unknown imperial surveyor (censitor). It is suggested that this individual may have been a colleague of Aelius Statutus, the censitor recorded on the boundary stones of the province of Syria Phoenice. Additionally, the inscription reveals two new toponyms: ‘Tirthas’ and ‘Golgol’, which may correspond to preserved toponyms Kh. Turritha and Tell ʿAjul, respectively. These locations were last recorded by the Survey of Western Palestine (SWP). The paper places this discovery in the context of other boundary stones in the Paneas/Caesarea-Phillipi territory and attempts to explain their extraordinary concentration in light of Diocletianic tax reforms and rabbinic sources. The authors suggest that the territory was probably filled with fields and farms owned by small landholders who paid their taxes independently of the city, providing insight into the complex relationship between taxation, land ownership, and settlement history.

A reform of value-added taxes on foods can have health, environmental and economic benefits in Europe.

Fiscal policies can provide important incentives for encouraging the dietary changes needed to achieve global policy targets. Across Europe, the foods relevant to health and the environment often incur reduced but non-zero value-added tax (VAT) rates at about half the maximum rates, which allows for providing both incentives and disincentives. Integrating economic, health and environmental modelling, we show that reforming VAT rates on foods, including increasing rates on meat and dairy, and reducing VAT rates on fruits and vegetables can improve diets and result in health, environmental and economic benefits in most European countries. The health improvements were primarily driven by reductions in VAT rates on fruits and vegetables, whereas most of the environmental and revenue benefits were driven by increased rates on meat and dairy. Our findings suggest that differentiating VAT rates based on health and environmental considerations can support changes towards healthier and more sustainable diets in Europe.

Can environmental regulation improve the industrial ecology efficiency? Evidence from China's environmental protection tax reform.

Improving industrial ecology efficiency (IEE) is the key path to achieve green economic development. This paper calculates IEE of 273 Chinese cities a super slacks-based measurement (Super-SBM) model and examines the impact of environmental protection tax reform (EPTR) on IEE by the difference-in-difference (DID) model. The results show that the effect of EPTR on IEE is significantly positive. After a series of robustness tests, this conclusion still holds true. EPTR has a more obvious effect on IEE of coastal cities, Class 1 cities and non-resource-based cities. EPTR mainly enhances IEE through green technology innovation effect, industrial structure upgrading effect and public participation effect. This paper provides empirical evidence for improving China's environmental policies and promoting green transformation.

Environmental Tax Reform Roles and Strategies of Local Governments: A Quasi-Natural Experiment from China

Environmental Tax Reform Roles and Strategies of Local Governments: A Quasi-Natural Experiment from China

Can information, compensation and party cues increase mass support for green taxes?

ABSTRACT The transition from fossil fuels to renewable energy presents a major challenge, with green taxes often seen as an efficient policy to promote environmentally friendly behaviour. However, these taxes are difficult to implement due to public concerns about immediate costs versus future environmental benefits. To address this, we conducted a survey experiment in Switzerland to investigate whether information on green tax effectiveness, compensation through revenue recycling, and party cues can make green taxes more attractive to citizens. Our findings indicate that information about compensation mechanisms and party cues can enhance support for green taxes, while single instances of information on green tax effectiveness do not significantly affect beliefs or policy support. Green tax proposals are more popular when compensation strategies address climate change or mitigate social risks and when there is broad party consensus providing clear cues to citizens. However, our findings also underscore the potential trade-off associated with a broad coalition of parties supporting green tax reform, which may lead to diminished support from the left. These insights have important implications for designing and communicating green taxes, highlighting the role of informed beliefs and political signals in shaping public attitudes toward environmental policies.

Осмысление проблемных вопросов проводимой на глобальном уровне реформы международного налогообложения цифровых компаний

The author's interest in the topic of the article is caused by the fact that in the context of a new geopolitical reality, the process of transformation of the international tax order and, within its framework, the rules for taxation of profits of foreign digital companies is accelerating. In the article, the author analyzes and comprehends the problematic issues of the reform of international taxation carried out by the Organization for Economic Cooperation and Development (OECD) at the global level. The author gives an assessment of the International Approach to taxation of profits of digital companies developed by the OECD and implemented by it. The article also analyzes the author of a new approach proposed by the OECD to the distribution of global profits received by digital companies from the supply of digital products in the market of foreign jurisdictions for users of these products. In addition, the author identifies the legal grounds and expediency of introducing a tax on digital services by some states. In order to achieve the goal of sustainable economic development of states, an effective solution to the problem of international taxation of profits of digital companies is becoming increasingly important. The global community of states and their tax administrations face a strategic task: to achieve a situation in which the international tax system will reflect all trends in the development of the digital economy. To achieve this goal, it is necessary to achieve coherence between the actions of States at the regional and global levels. Due to the significant increase in the volume of activities of foreign digital companies, the digital business has increased the need to develop and implement a unified international approach to taxation of income of digital companies and primarily Multinational companies (TNCs) received from the supply or digital services (products) to the markets of foreign jurisdictions. In the context of the active development of the digital economy, scientists and practitioners faced a question that requires a clear answer – on what grounds and to what extent the procedure for taxation of corporate income within the digital economy differs from the procedure for taxation of corporate income in the traditional economy. With the expansion of the scale of digital business projects, the number of the largest digital companies (the so-called giants) is growing, new digital facilities are being allocated, the number and geography of users' consumption of digital products is increasing, and the number of user contracts they conclude using digital company data is growing.

Assessing the effect of Nigeria new tax reform on small and medium enterprises: a financial perspective

Nigeria's new tax reform, which came into effect in 2023, aims to increase revenue generation and promote economic growth. However, the impact of this reform on small businesses in Nigeria is not well understood. This study assesses the financial impact of Nigeria's new tax reform on small businesses, using a mixed-methods approach. The results show that the reform has both positive and negative effects on small businesses, including increased tax burdens, reduced profitability, and improved tax compliance. The study concludes that policymakers should consider the unique needs and challenges of small businesses when designing tax policies.

New tax reforms and public debt management in Nigeria: challenges, opportunities, and policy recommendations

This paper examines the interplay between new tax reforms and public debt management in Nigeria, highlighting the challenges and opportunities that arise from recent fiscal strategies. It evaluates the effectiveness of these reforms in addressing Nigeria’s debt sustainability concerns and proposes actionable policy recommendations to optimize fiscal outcomes. By employing a mixed-methods approach, the paper integrates quantitative data on tax revenue performance and qualitative insights from fiscal policy literature. It concludes that while recent tax reforms offer significant potential for revenue mobilization, institutional and structural inefficiencies hinder their full impact on public debt reduction.

Eficiencia versus eficacia recaudatoria. El caso de la Real Hacienda de Chile a fines del periodo colonial

Despite consensus in specialized historiography regarding the swelling of the Spanish Royal Indian Treasuries in the late colonial period, the evidence to support the claim has generally been total tax revenues. In other words, it is based only on collection effectiveness, not efficiency, which would also account for fiscal performance and the ratios between net tax proceeds, collection cost and tax revenue. This paper addresses this deficit in Spanish-American history, evaluating collection efficiency through a case study of the Royal Treasury of Chile from the last third of the 18th century through the colonial decline. Researchers use official documentation on the Chilean treasury’s financial position, prepared since the 1780s, to reproduce the actual flow of tax variables. When combined with an examination of the treasury’s governance and administration, the analysis demonstrates that, while successful in terms of collection, tax reforms faced serious application and adaptation issues on Chilean soil. Following a costly bureaucratic consolidation process culminating in Intendent-issued ordinances, the abovementioned issues forced local authorities to amend several “modernizing” measures to relieve local financial tensions. These were in place until the colonial decline.

Agentizing a General Equilibrium Model of Environmental Tax Reform

Agentizing a General Equilibrium Model of Environmental Tax Reform

Effect of Tax Reforms on Revenue Generation in Nigeria: A Conceptual and Theoretical Review

Effect of Tax Reforms on Revenue Generation in Nigeria: A Conceptual and Theoretical Review

Tax Reform Regarding Tokenized Corporate Bonds in Japan

The 2024 tax reform in Japan took a significant step forward toward establishing a tax system designed to promote the issuance of corporate bonds as security tokens for wholesales. Prior to the amendment, certain entities, including banks, insurance companies, and certain financial instruments business operators, were subject to withholding tax on interest income from tokenized bonds. However, these entities are now exempt from the withholding tax, provided the tokenized bonds are managed in accordance with the relevant public notice of the Financial Services Agency in Japan. Owing to this recent tax reform, the barrier that previously prevented many companies from issuing security token bonds for wholesale purposes has been removed, and as a result, the issuance of such bonds is expected to increase substantially going forward.

Impact and Mechanism Analysis of Environmental Protection Fee and Tax Reform on the ESG Performance of Heavy Polluting Enterprises

Recently, China has advocated for the comprehensive implementation of the new development concept and the enhancement of the national governance system and capacity, particularly in the area of ecology and environmental management. Environmental fee and tax reform has improved China’s modern environmental governance system and deepened the concept of sustainable development of enterprises. In the background of China’s strong call for green transformation and sustainable development, enterprises, as micro subjects in the operation of the market economy, are obliged to balance the concepts of business operation and sustainable development, and to practice and implement the ESG concept. Using a sample of A-share listed companies in China from 2014 to 2022, we conducted an in-depth analysis of the impact of environmental protection tax reform on corporate ESG performance through the difference-in-differences (DID) empirical approach. The results show that (1) the environmental protection fee and tax reform enhances the ESG performance of heavy polluters, and the impact coefficient is around 1.7 to 2.0. The reform exerts the strongest stimulatory effect on the environmental impact (E), with the stimulatory effect being about five times that of the aspect of social responsibility (S). (2) The environmental protection fee and tax reform enhances the ESG performance of heavily polluting firms by promoting green transformation of firms, investor attention, and the government’s focus on the environment. The impact mechanism passes a series of robustness tests, such as the parallel trend test, placebo test, and exclusion of other policy interferences. (3) The environmental protection fee and tax reform enhances the ESG performance of government-owned heavy polluting firms more than private firms. Among different regions, the ESG performance of enterprises in the central region has witnessed the largest improvement margin, while that of enterprises in the western region has the smallest improvement margin.

From theory to practice: Designing a European basic income

AbstractBasic income, a periodic cash payment unconditionally delivered to all accredited residents on an individual basis, has garnered a great deal of attention in recent years driven by rising inequalities, the failure of minimum income schemes, labor market transformations, and diverse basic income pilot projects worldwide. However, the successful implementation of a basic income requires a comprehensive and sustained effort. This research contributes to this endeavor by providing an unprecedented microsimulation analysis of the economic feasibility of a European Basic Income (EBI), demonstrating that it can be financed sustainably and equitably without reducing existing tax revenues. The proposed EBI, financed through a reform of the personal income tax and the introduction of common European wealth and greenhouse gas emissions taxes, ensures the material existence of all Europeans and fosters a more egalitarian European Union through its redistributive effects.

Impact of taxation on tobacco products prices in Bahrain, Saudi Arabia and United Arab Emirates.

In 2016, the 6 Gulf Cooperation Council countries agreed to implement a harmonized excise tax on tobacco products, at a rate of 100% of the pre-tax price. To assess the implementation of tobacco taxation in Bahrain, Saudi Arabia and United Arab Emirates and its impact on consumer prices, affordability and substitution possibilities. This study conducted simple descriptive analysis of open-source secondary data reported to WHO by Bahrain, Saudi Arabia and United Arab Emirates on cigarette excise taxes, price levels, price dispersion, and affordability. The 3 countries imposed more than 70% excise tax on tobacco products. Saudi Arabia, in addition, imposed the value added tax. This led to sharp price increases and less affordability in all the countries. In 2020, the affordability index in the Gulf Cooperation Council countries ranged from 1.3% in Kuwait to 3.8% in Saudi Arabia. However, affordability was still higher in these countries than in the rest of the world. Despite the progress made on tobacco tax reform in the 3 countries, affordability was higher than in other countries, indicating the need for improvements. The tobacco tax system has some weaknesses that need to be addressed in future reforms, for example, the lack of systematic data collection and management systems and the disconnect between the health, tax economics, research, and policy experts.

Driving green innovation: assessing the impact of environmental tax policies and green finance on heavily polluting industries

Purpose The purpose of this paper assess the impact of the green finance pilot reform on corporate green innovation, leveraging the establishment of the China green finance pilot reform in 2018 as a quasi-natural experiment. Design/methodology/approach This study investigates the effects of environmental policies on green innovation, utilising a substantial data set from Chinese A-share listed firms over the 2015–2019 period. Employing both double and triple difference models, it focuses on how tax reforms influence green patent filings among these firms. Findings The study confirms that environmental tax policies and green finance initiatives significantly boost green patent filings in pollution-intensive industries. Findings from the regression analysis show robust positive effects from these policies, supporting the idea that stringent environmental regulations can spur innovation by offsetting regulatory costs. Financial health indicators like asset logs and return on assets positively correlated with innovation, emphasising the importance of financial stability. In addition, increased RandD spending is linked to enhanced green innovation, highlighting that financial investment in research is crucial for overcoming innovation barriers. These insights are crucial for shaping policies that integrate sustainability into corporate practices. Originality/value This research contributes to the literature by highlighting traditional views on the economic burden of environmental taxes and demonstrating their role as significant drivers of innovation. It deepens insights into strategically optimising fiscal tools to promote environmentally sustainable economic activities. In addition, it offers a practical framework for policymakers to improve ecological outcomes through effective fiscal strategies.

Tax Revenue and Economic Sustainable Development of Sub-Sahara African Countries

The focus of every nation is on meeting the year 2030 global target for the attainment of the Sustainable Development Goals (SDGs) especially in the sub-Sahara African (SSA) countries. However, sub-Sahara African Countries are still lagging in achieving the SDGs as there is still a high level of hunger, poverty, and poor standard of living. This paper examined the effect of tax revenue on economic sustainability in sub-Sahara African Countries using a quantitative approach, A panel data of 38 sub-Sahara African Countries for 21 years (2001–2021) was employed. The output of the regression analysis carried out using the system generalized moment method revealed that tax revenue had a significant effect on economic sustainability, and governance quality significantly controlled the effect of tax revenue on economic sustainability in sub-Sahara African countries. The study concluded that tax revenue enhanced the attainment of economic sustainability in sub-Sahara African countries. It was recommended that the government of sub-Sahara African countries should adopt comprehensive tax reforms and strengthen governance quality to boost the funds needed towards the attainment of economic sustainability in the region.

KENYA: Tax Reforms

KENYA: Tax Reforms

R&D Tax Incentive Reforms Around the World: The Impact on Firm Value

Many countries have implemented R&D tax incentives to encourage R&D activities and foster innovation, yet their net economic benefits remain unclear. Using a novel hand-collected dataset of global R&D tax reforms and a difference-in-differences approach, we find that these reforms positively impact firm value. The effect is stronger for more generous reforms, those that adopt R&D tax super-deductions, in countries with less developed stock markets and stronger external monitoring, in R&D oriented industries, and for financially constrained firms. We also show that R&D tax incentives enhance firm value by increasing the quantity, quality, and efficiency of innovation. Furthermore, R&D tax incentives outperform patent boxes in enhancing firm value. Additionally, the two tax regimes complement each other, with this complementary effect driven by super-deduction reforms. Our findings shed light on the role of global R&D tax reforms in promoting firm value, suggesting their potential to foster long-term economic benefits.

Study on the Substitution Effect of Property Tax on Land Finance—Analysis based on Shanghai and Chongqing Reform Pilots

This paper aims to study the substitution effect of property tax on land finance through the pilot property tax reform implemented in Shanghai and Chongqing. Based on the theoretical foundation of analysing the impact of property tax on land finance, this paper selects the annual panel data of 35 large and medium-sized cities published by the National Bureau of Statistics (NBS) from 2006 to 2017, and analyses the impact of the pilot property tax reform on the dependence on land finance in Chongqing and Shanghai and its extent. The findings show that the pilot effect of property tax reform in Shanghai is consistent with theoretical expectations, while the opposite is true for Chongqing; under a reasonable property tax system, the substitution effect of property tax reform on land finance gradually increases over time. In the conclusion, the paper puts forward relevant suggestions.