Do regional tax incentive policies improve productivity?
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ABSTRACT:
SUBMITTER: Zhao M
PROVIDER: S-EPMC11349089 | biostudies-literature | 2024 Jan
REPOSITORIES: biostudies-literature
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Project description:BackgroundIn November 2021, the Tobacconomics team published the second edition of the Cigarette Tax Scorecard which evaluates cigarette taxation in each country based on four components-cigarette price, affordability change, tax share and tax structure. This study examines the relationship between the overall cigarette tax score and tobacco excise tax revenue between 2014 and 2018.MethodsUsing cigarette tax scores from the Tobacconomics Cigarette Tax Scorecard and tobacco excise tax revenue information from WHO, this analysis is based on ordinary least squares estimations to assess the association between the overall cigarette tax scores and tobacco excise tax revenues per capita controlling for countries' tobacco control environment, sociodemographic characteristics and country and year fixed effects.ResultsA 1-point higher overall cigarette tax score is associated with higher tobacco excise tax revenue per capita of $11.98 (in constant 2018 purchasing power parity international dollars). For low and middle-income countries and lower performing countries at baseline, a 1-point higher overall cigarette tax score is associated with higher tobacco excise tax revenue per capita of $11.32 and $6.92, respectively. If all countries had increased their scores to '5', the tobacco excise tax revenue per capita would have increased by 22.51%.ConclusionsHigher overall cigarette tax scores are associated with higher tobacco excise tax revenue per capita. Countries aiming to reach higher cigarette tax scores would be able to reduce tobacco use and increase their tobacco tax revenue, which can be allocated to development priorities.
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Project description:In compliance with the socioeconomic theory, the study has strived to investigate the impact of economic and non-economic public policies on tax evasion using panel data of 7 SAARC countries covering the period from 1998 to 2015. The study has applied the ordinary least square with fixed effect and random effect models to analyze the data assembled. The result of the study implies that the higher the degree of economic freedoms, the lower the tax evasion. More specifically, the government policies about property rights, monetary freedom, fiscal freedom and investment freedom have a negative influence on taxpayers' choices of tax evasion while financial freedom result shows a positive effect on tax evasion. Additionally, there is a negative impact of public sector governance and religiosity on tax evasion, which implies the higher the public sector governance and the higher the religious faith amid the people, the lower the degree of tax evasion. The findings of the study are supposed to offer the governments, tax authorities, and research scholars the valuable insights into public policies for reducing the tax evasion to a significant extent.
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Project description:This study empirically demonstrates significant regional peer effects due to tax avoidance. We used peer companies' idiosyncratic stock returns as an instrumental variable to address potential endogeneity problems. The heterogeneity analysis indicates that for companies with a stronger intensity of regional tax collection and management, a higher degree of informatization, and companies with a low management shareholding ratio, the regional peer effects of enterprise tax avoidance are more significant. Finally, we determined that the managers' information learning, reputation consideration, and information communication are key mechanisms propagating peer effects. The conclusions of this paper enrich and expand the peer effect theory of corporate tax avoidance, thereby providing a theoretical basis and empirical evidence for tax authorities in supervising corporate tax avoidance.
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Project description:ObjectiveTo systematically identify and review food taxation policy changes in Pacific Island Countries and Territories (PICTs).DesignFood taxation polices, regarding excise taxes and tariffs applied from 2000 to 2020 in twenty-two PICTs, and their key characteristics were reviewed. The search was conducted using databases, government legal repositories and broad-based search engines. Identified documents for screening included legislation, reports, academic literature, news articles and grey literature. Key informants were contacted from each PICT to retrieve further data and confirm results. Results were analysed by narrative synthesis.SettingNoncommunicable diseases (NCD) are the leading cause of premature death in PICTs and in many jurisdictions globally. An NCD crisis has been declared in the Pacific, and food taxation policy has been recommended to address the dietary risk factors associated with. Progress is unclear.ResultsOf the twenty-two PICTs included in the study, fourteen had food taxation policies and five introduced excise taxes. Processed foods, sugar and salt were the main target of excise taxes. A total of eighty-four food taxation policy changes were identified across all food groups. There was a total of 279 taxes identified by food group, of which 85 % were tariffs and 15 % were excise taxes. Individual tax rates varied substantially. The predominant tax design was ad valorem, and this was followed by volumetric.ConclusionsA quarter of PICTs have introduced food excise taxes from 2000 to 2020. Further excise taxes, specifically tiered or nutrient-specific designs, could be introduced and more systematically applied to a broader range of unhealthy foods.
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Project description:We study attitudes towards the introduction of hypothetical new taxes to finance the cost of the COVID-19 pandemic. We rely on survey data collected in Luxembourg in 2020. The survey asks for the agreement of respondents over: a one-time net wealth tax, an inheritance tax, a temporary solidarity income tax, and a temporary increase in VAT. All questions include different and randomly assigned tax attributes (tax rates and exemption amounts). We find a clear divide with relatively high support for new wealth and inheritance taxes on the one hand and a low support for increases in VAT and income taxes on the other hand. While 58% of respondents agree or strongly agree with a one-time tax levied on net worth, only 24% are in favor of a small increase in VAT. Support for any tax is however negatively associated with the size of the tax as measured by the predicted revenues. Our results indicate that a one-time wealth tax could raise substantial revenues and still garner public support.Supplementary informationThe online version contains supplementary material available at 10.1007/s10797-022-09744-y.
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Project description:In 2014, Mexico implemented a tax on sugar-sweetened beverages (SSB) equivalent to one Mexican peso (MP) per liter to address the high obesity prevalence. This tax has effectively reduced SSB purchases and yielded healthcare savings; however, it remains unknown whether SSB taxes lead to net benefits at the societal level in Mexico. Moreover, public health experts recommend increasing the tax. The objective of this study is to estimate the net benefits of SSB taxes compared to a scenario of no tax in urban Mexico. Taxes include the one-MP tax and alternative higher taxes (two and three MP per SSB liter). Thus, we conducted a cost-benefit analysis from the perspective of the government, producers, and consumers for a simulated closed cohort of adults in a life-table model. We defined net benefits as the difference between economic benefits (the value of statistical life, healthcare savings, and tax revenue) and costs (consumer surplus and profit losses). We found that, at the societal level, all simulated taxes will eventually generate benefits that surpass costs within ten years. Overall net benefits can reach USD 7.1 billion and 15.3 billion for the one-MP and the three-MP tax, respectively. Hence, these benefits increased at a declining rate compared to taxes. The government and consumers will experience overall positive net benefits among society's members. Policymakers should consider time horizons and tradeoffs between health gains and economic outcomes across different society members.
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Project description:The Government of Bangladesh (GoB) first implemented the cash incentive of 2 percent in July 2019 and continued the scheme with some modifications amid the pandemic to enhance remittance inflows through formal channels and ensure macroeconomic stability in the country. This study examines the impact of the cash incentive introduced by the GoB to boost remittance inflow using the Interrupted Time Series (ITS) analysis along with the Chow test for structural stability. While ITS analysis has been employed by numerous studies in the healthcare sector, but this paper uses such analysis for the first time in any type of migration study in Bangladesh. We have used ITS as it is most effective in measuring the impact of policy interventions that are expected to act either quickly after an intervention or within a stipulated time frame. The study is also the first to examine the region wise efficacy of policy intervention in the country. Monthly Remittance Inflow data from July 2013 to December 2021 has been used for the analysis. Chow test results conclude that the policy intervention had a significant impact while the ITS analysis findings demonstrated that the cash intervention significantly increased both aggregated and region-specific remittance inflows, highlighting the significance of the action. The overall findings revealed that the introduction of cash incentive in July 2019 resulted in an immediate, sustained increase of 6.68 percent in remittance inflows, with a further increase of 0.25 percent every month. Region wise analysis shows that the impact was highest in the USA & UK region and lowest in the Middle Eastern region, which signifies issues related to prevalence of hundi market, skillset of migrant workers, average monthly salary, and remittance sending costs. Our research provides policymakers with significant information to implement customized policies that ensure macroeconomic stability by enhancing remittance inflows through formal channels.
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Project description:Can improving access to mobile extension improve agricultural productivity? Recent evidence suggests both significant and insignificant ways in which SMS-based agricultural information could affect farming outcomes. It is unclear if variations in the programs' design or the methodological challenges in evaluating the programs cause wide-ranging impacts. Extension hotline services provide rapid, unambiguous information by agricultural experts over the phone, tailored to time- and crop-specific shocks. Using methods from experimental economics, we randomly distributed the hotline number to generate exogenous variation in the access to farming information. We conducted our study among 300 farmers in the South Indian state of Karnataka. Our results show that eliminating informational inefficiencies increases farmers' average yields for a high-stakes pigeon pea crop that faced adverse aggregate shock. The impact on the yield is through the adoption of cost-effective and improved farming practices. However, we do not observe any effect on the crops that were not affected by the shock. Our findings reveal that advisory recommendations customized to time- and crop-specific shocks are associated with a greater impact on agricultural productivity.
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