scholarly journals No Taxation without Information: Deterrence and Self-Enforcement in the Value Added Tax

2013 ◽  
Author(s):  
Dina Pomeranz
Keyword(s):  
Value Added ◽  
Value Added Tax ◽  
Self Enforcement

scholarly journals The Role of Withholding in the Self-Enforcement of a Value-Added Tax: Evidence from Pakistan

2020 ◽  
pp. 1-44
Author(s):  
Mazhar Waseem
Keyword(s):  
Value Added ◽  
The Self ◽  
Extensive Margin ◽  
Value Added Tax ◽  
A Value ◽  
Self Enforcement ◽  
Large Response ◽  
Roll Out

I leverage the staggered roll out of VAT in Pakistan to document the role of withholding mechanism in the self-enforcement of a VAT. Focusing on firms already in the tax net, I see how their outcomes respond when the tax is extended upward to intermediates used by them. I find that the upward extension of VAT, which triggers the withholding mechanism, causes an immediate and large (more than 40 log-points) surge in sales reported by firms. The evolution of bunching above the zero-liability point and of input costs reported by firms suggest that this large response is indeed driven by the withholding mechanism. I also explore the role of withholding in the extensive margin compliance choices of firms.

scholarly journals No Taxation without Information: Deterrence and Self-Enforcement in the Value Added Tax

2015 ◽  
Vol 105 (8) ◽  
pp. 2539-2569 ◽  
Author(s):  
Dina Pomeranz
Keyword(s):  
Value Added ◽  
Third Party ◽  
Randomized Experiments ◽  
Value Added Tax ◽  
Tax Enforcement ◽  
Deterrence Effect ◽  
Self Enforcement ◽  
Additional Monitoring

Claims that the VAT facilitates tax enforcement by generating paper trails on transactions between firms contributed to widespread VAT adoption worldwide, but there is surprisingly little evidence. This paper analyzes the role of third-party information for VAT enforcement through two randomized experiments among over 400,000 Chilean firms. Announcing additional monitoring has less impact on transactions that are subject to a paper trail, indicating the paper trail's preventive deterrence effect. This leads to strong enforcement spillovers up the VAT chain. These findings confirm that when taking evasion into account, significant differences emerge between otherwise equivalent forms of taxation. (JEL D83, H25, H26, K34, O17)

Collection of Value Added Tax in Kosovo and Its Effect on Economic Growth

2017 ◽  
Vol 8 (1) ◽  
pp. 225
Author(s):  
Teki Shala
Keyword(s):  
Economic Growth ◽  
Descriptive Analysis ◽  
Value Added ◽  
Analytical Techniques ◽  
Value Added Tax ◽  
Statistical Tool ◽  
Revenue Collection ◽  
Strong Positive Relationship ◽  
Level Of Economic Development ◽  
Level Of Significance

The revenue collected from the value added tax constitutes the main income of the Kosovo government. For this reason, this research has a great importance in the formulation of effective policies in Kosovo that will subsequently improve the efficiency of tax collection of Value Added and growing fiscal and budgetary stability. This research it will have a descriptive analysis of the trends of VAT collection in Kosovo from 2005- 2015 years using different analytical techniques to examine trends and data structure over the years. We have used two types of analysis; One is the descriptive analysis of trends and the other is the contrast of the descriptive analysis of trends that is the econometric technique used to analyze the VAT effect on economic growth in Kosovo. The source of data for this study is secondary through the Annual Financial Report of the Ministry of Finance of Kosovo and the IMF. In order to analyze the data generated for the study, the statistical tool utilized is OLS technique (multiple regression). One of the key findings in the collection of VAT has been its dependence on the border. Revenue collection is among the most pressing problems and such situation does not guarantee a country's budgetary stability. Also, based on the findings we noted that the VAT share of the gathering in gross domestic product of the Interior of the country has been low compared to other countries in Europe developing, reflecting a low level of economic development. Also from econometric analysis is confirmed that the regression coefficient shows that we have a VAT impact on GDP in Kosovo, because the level of significance is .000, or includes the rate of 1%. Also, the correlation between VAT and GDP shows a strong positive relationship, or statistically interpreted with the increase of VAT, will increase the GDP of Kosovo, these two elements conclude that VAT has a significant impact on economic growth in Kosovo. Furthermore, this research highlight some key issues that policy makers should consider dealing with the collection and effective use of revenue collected from VAT, to improve growth.

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