[PDF] The Value Added Tax And Growth Design Matters eBook

Author : Mr.Santiago Acosta Ormaechea
Publisher : International Monetary Fund
Page : 38 pages
File Size : 36,7 MB
Release : 2019-05-07
Category : Business & Economics
ISBN : 149831418X

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Does the design of a tax matter for growth? Assembling a novel dataset for 30 OECD countries over the 1970-2016 period, this paper examines whether the value added tax (VAT) may have different effects on long-run growth depending on whether it is raised through the standard rate or through C-efficiency (a measure of the departure of the VAT from a perfectly enforced tax levied at a single rate on all consumption). Our key findings are twofold. First, for a given total tax revenue, a rise in the VAT, financed by a fall in income taxes, promotes growth only when the VAT is raised through C-efficiency. Second, for a given VAT revenue, a rise in Cefficiency, offset by a fall in the standard rate, also promotes growth. The implication is thus that in OECD countries broadening the VAT base through fewer reduced rates and exemptions is more conducive to higher long-run growth than a rise in the standard rate.

Author :
Publisher :
Page : 116 pages
File Size : 44,20 MB
Release : 2017
Category :
ISBN : 9789264295490

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Value Added Tax (VAT; also known as Goods and Services Tax, under the acronym GST in a number of OECD countries) has become a major source of revenue for governments around the world. Some 165 countries operated a VAT at the time of the completion of the International VAT/GST Guidelines in 2016, more than twice as many as 25 years before. As VAT continued to spread across the world, international trade in goods and services has also expanded rapidly in an increasingly globalised economy. One consequence of these developments has been the greater interaction between VAT systems, along with growing risks of double taxation and unintended non-taxation in the absence of international VAT co-ordination. The International VAT/GST Guidelines now present a set of internationally agreed standards and recommended approaches to address the issues that arise from the uncoordinated application of national VAT systems in the context of international trade. They focus in particular on trade in services and intangibles, which poses increasingly important challenges for the design and operation of VAT systems worldwide. They notably include the recommended principles and mechanisms to address the challenges for the collection of VAT on cross-border sales of digital products that had been identified in the context of the OECD/G20 Project on Base and Erosion and Profit Shifting (the BEPS Project). These Guidelines were adopted as a Recommendation by the Council of the OECD in September 2016.

Author : Kathryn James
Publisher : Cambridge University Press
Page : 495 pages
File Size : 20,58 MB
Release : 2015-04-30
Category : Business & Economics
ISBN : 110704412X

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Explores how the value-added tax (VAT) has risen from relative obscurity to become one of the world's most dominant revenue instruments.

Author : Mario Pessoa
Publisher : International Monetary Fund
Page : 29 pages
File Size : 36,41 MB
Release : 2021-05-10
Category : Business & Economics
ISBN : 1513577042

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The value-added tax (VAT) has the potential to generate significant government revenue. Despite its intrinsic self-enforcement capacity, many tax administrations find it challenging to refund excess input credits, which is critical to a well-functioning VAT system. Improperly functioning VAT refund practices can have profound implications for fiscal policy and management, including inaccurate deficit measurement, spending overruns, poor budget credibility, impaired treasury operations, and arrears accumulation.This note addresses the following issues: (1) What are VAT refunds and why should they be managed properly? (2) What practices should be put in place (in tax policy, tax administration, budget and treasury management, debt, and fiscal statistics) to help manage key aspects of VAT refunds? For a refund mechanism to be credible, the tax administration must ensure that it is equipped with the strategies, processes, and abilities needed to identify VAT refund fraud. It must also be prepared to act quickly to combat such fraud/schemes.

Author : Mr. Augusto A Perez Azcarraga
Publisher : International Monetary Fund
Page : 320 pages
File Size : 18,66 MB
Release : 2022-06-15
Category : Business & Economics
ISBN :

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Customs administrations around the world face new challenges: an increasing volume of international trade, a revolution in new technologies, and fundamental changes in business models. The benefits of a well-performing customs administration are clear, as is the need to develop efficient, effective, fair, and modern customs administrations. Customs Matters analyzes the many changes and challenges customs administrations face and pro-poses ways to address them. By offering a cross-sectional view of the main aspects of customs ad-ministration, the book guides policymakers and customs officials as they evaluate the current state of their customs system with a view to developing, reinforcing, or relaunching their own roadmaps for customs modernization.

Author :
Publisher :
Page : pages
File Size : 38,56 MB
Release : 2006
Category : Economic development
ISBN :

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This dissertation evaluates the empirical relation between the value-added tax (VAT) and the level of aggregate consumption. Furthermore, it develops a theoretical framework and an empirical analysis to study the impact of the VAT, as a form of taxing consumption, on capital accumulation, productivity growth, and overall economic growth. While recent theoretical work shows that the VAT may boost capital accumulation and growth by encouraging more savings, we find that the net impact of consumption taxes on growth and its sources is theoretically ambiguous, and depends on the interaction between utility parameters, the interest rate, and the tax structure. Moreover, we develop a theoretical model to study the tax design problem in order to rationalize the observed variation in effective VAT rates over time in our sample. This framework considers both equity and efficiency as important factors determining optimal tax structure, and we identify conditions under which taxes could be evolving or constant over time. Empirically, we use a panel of 15 European Union countries and employ the recently developed GMM dynamic panel techniques. After controlling for the potential biases associated with persistence, endogeneity, simultaneity, measurement error, omitted variables, and unobserved country-specific effects, we find that (i) the VAT exerts a negative impact on the level of aggregate consumption, (ii) the VAT affects physical capital accumulation positively, which feeds through to overall GDP growth, and (iii) productivity growth seems to be a less relevant channel for the VAT to influence economic growth.

Author : Robert Carroll
Publisher : Rowman & Littlefield
Page : 224 pages
File Size : 41,68 MB
Release : 2012
Category : Business & Economics
ISBN : 0844743941

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The authors observe that consumption taxation is superior to income taxation because it does not penalize saving and investment and propose that the U.S. income tax system be completely replaced by a progressive consumption tax. They argue that the X tax, developed by the late David Bradford, offers the best form of progressive consumption taxation for the United States and outline concrete proposals for the X tax's treatment of numerous specific economic issues.

Author : Sijbren Cnossen
Publisher : Oxford University Press
Page : 450 pages
File Size : 40,87 MB
Release : 2022
Category : Business & Economics
ISBN : 0192855247

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"This book is the product of the first Cnossen Forum-Tax by design for the Netherlands that was held on 23-24 May 2019."--Page v.