A VAT Revenue Simulation Model for Tax Reform in Developing Countries

Jenkins, Glenn P.; Kuo, Chun‐Yan

doi:10.1016/s0305-750x(99)00144-8

Cited by 30 publications

(19 citation statements)

References 2 publications

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“…Due to the limited data availability, these studies on domestic tax evasion and tax avoidance in developing countries are typically based on macro indicators of the size of the shadow economy or the informal sector to try to estimate the tax gap. The tax revenue losses due to avoidance and evasion are estimated for the economy as a whole using essentially what might be referred to as back of the envelope calculations (Aguire & Shome, ; Giles, ; Jenkins & Kuo, ; Cobham, ). Cobham () is the most widely cited study of the domestic component of tax evasion.…”

Section: Introductionmentioning

confidence: 99%

The Extent and Determinants of Tax Gap in the Informal Sector: Evidence from Ghana

Danquah

Osei‐Assibey

2018

J of Intl Development

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In this paper, we attempt to estimate the tax gap in the informal sector as well as the contributing factors of the tax losses in SSA countries using Ghana as a case study. Using micro data on non-farm household enterprises obtained from the sixth round of the Ghana Living Standards Survey as well as data on quarterly tax payable by specified small scale enterprises derived from the Small Tax Payer office of the Ghana Revenue Authority, the findings show that the national potential and actual taxes in the informal sector are US$ 81 974 846 and US$ 25 023 273, respectively, reflecting an estimated national tax gap or loss of approximately US$ 56 951 573. Firm level variables such as type of business, urban location and experience of the firm significantly increase the propensity to pay tax and reduce the tax gap.

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Section: Introductionmentioning

confidence: 99%

The Extent and Determinants of Tax Gap in the Informal Sector: Evidence from Ghana

Danquah

Osei‐Assibey

2018

J of Intl Development

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“…In 1990, the Wealth Tax Act exempted agricultural machinery, including tractors, from taxes. Although tractors for other purposes had generally been subject to value-added tax (VAT) (Jenkins and Kuo 2000), the 1996 VAT Act granted tax exemption to selected agricultural products, including agricultural machinery (NARMA Consultancy Pvt. Ltd. 2016).…”

Section: Trade and Import Policies (Tariffs Direct Restrictions Andmentioning

confidence: 99%

Evolution of agricultural mechanization in Nepal

Takeshima¹,

Justice²

2020

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Mechanization levels in Nepal, a largely agricultural country, were relatively low until a few decades ago. However, significant mechanization growth, including the adoption of tractors, has occurred since the 1990s, against a backdrop of rising rural wages, particularly for plowing, combined with growing emigration, growth in key staple crop yields, overall broad agricultural production growth, and improved market access and participation. This growth in mechanization has taken place despite the general absence of direct government support or promotion. The growth of tractor use in the plains of the Terai zone has transformed agricultural production rather than inducing labor movement out of agriculture. Thus it has raised overall returns to scale in intensification and enabled the cultivation of greater areas by medium smallholders than by resource-poor smallholders. Tractors have also facilitated the intensification of crop production per unit of land among very small farmers, enabling mechanization growth despite the continued decline in farm size, although these farmers may not have benefited as much as medium smallholders. Potential future research areas with policy relevance include mitigating accessibility constraints on tractor custom hiring services, identifying appropriate regulatory policies for mechanization, and providing complementary support to some smallholders who may not fully benefit from tractor adoption alone.This chapter is a shortened version of Takeshima (2017b), which contains more detailed description of the historical evolution of mechanization in the country.

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“…The research by Bogetic and Hassan (1993), Jenkins and Kuo (1995), Olexa (1999), Legeida and Sologoub (2003), Slobodnitsky and Drucker (2008), and Jenkins et al (2000), inspired our empirical study of where VAT revenues are modelled. These papers either analyse the case of a single country over some years (i.e.…”

Section: Empirical Analysis On Vat Revenues Determinants In the Eu-28mentioning

confidence: 99%

The reliance of budgets of EU member states on vat revenues. Implications in crisis and post-crisis periods

Masca¹,

Ionut-Constantin²,

Văidean³

2019

Argumenta Oeconomica

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The paper aims to provide quantitative background for policy prescriptions in the EU Member States facing a dependence on value added tax revenues. Our methods include a descriptive analysis and also an empirical study on the main determinants of value added tax revenues that resort to panel methodology. We conclude that preserving value added tax revenues as the main source for the state budget receipts is harder to achieve by tax rate reassessment, but is more easily attained by shaping the consumption path. If managing the value added tax rate is an unavoidable measure in some particular circumstances, more attention should be paid to confer that it is the right size in relation to the economic development.

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A VAT Revenue Simulation Model for Tax Reform in Developing Countries

Cited by 30 publications

References 2 publications

The Extent and Determinants of Tax Gap in the Informal Sector: Evidence from Ghana

The Extent and Determinants of Tax Gap in the Informal Sector: Evidence from Ghana

Evolution of agricultural mechanization in Nepal

The reliance of budgets of EU member states on vat revenues. Implications in crisis and post-crisis periods

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