An Empirical Evaluation of the Determinants of Property Tax Compliance Rate in Kaduna State, Nigeria

by | Apr 19, 2022 | AMTJ, AMTJ 2022 I1

An Empirical Evaluation of the Determinants of Property Tax Compliance Rate in Kaduna State, Nigeria

Author: Alhasan Usman

ISSN: 2709-8575
Affiliations: Manager (Tax), Federal Inland Revenue Service (FIRS), Nigeria
Source: African Multidisciplinary Tax Journal, 2022 Issue 1, p. 249-267
https://doi.org/10.47348/AMTJ/V2/i1a13

Abstract

This study examines empirically the variables that are driving property tax compliance rates in Kaduna State, Nigeria. In doing so, it relies on primary data sources. During the study, 400 respondents were targeted, but 406 completed questionnaires were analysed. The nature of the data collected necessitated employing the ordered logistic regression model to analyse the data. The result indicated that taxpayers’ satisfaction with the level of property tax digitalisation, the adequacy of property tax law, the administration of property tax and government provision of public goods are important determinants of the property tax compliance rate in Kaduna State. It further found that the average property tax compliance rate in the State is 18.32 per cent, the average satisfaction with the level of digitalisation of property tax is 39.71 per cent, the average taxpayer’s satisfaction with the adequacy of property tax law in the State is 27.68 per cent, the average satisfaction with the administration of property tax is 31.31 per cent and the average taxpayer’s satisfaction with the provisions of public goods is 58.21 per cent. The study recommends that the Kaduna State government should enact a property taxation law to adequately take care of the rate, base, time and procedures of filing and payments of the tax. The digitalisation of the tax should go beyond property registration but should cover all other aspects of digital taxation, ranging from assessment to payment of taxes.

Estimating the Property Taxation in WAEMU Countries: an Analysis

by | Apr 19, 2022 | AMTJ, AMTJ 2022 I1

Estimating the Property Taxation in WAEMU Countries: an Analysis

Authors: Djibril Adékola Fatoumbi and Alastiar Sena Alinsato

ISSN: 2709-8575
Affiliations: Chercheur la Direction Gémérale des I Imyôts du Bénin; Enseignant-chercheur à l’Université d’Abomey-Calaru
Source: African Multidisciplinary Tax Journal, 2022 Issue 1, p. 268-287
https://doi.org/10.47348/AMTJ/V2/i1a14

Abstract

The question of efficient domestic tax revenue mobilisation in developing countries has continued to receive particular attention in recent years. This article evaluates the potential of property tax revenues in Western African Economic and Monetary Union (WAEMU) countries. To this end, three methods were employed using data from the Government Financial Statistics (GFS) of the International Monetary Fund (IMF) and the World Bank’s World Development Indicators (WDI). The Hodrick-Prescott filter method (1980) further allowed for a chronological estimation of the potential of property taxes while the optimisation model of Scully (1995) facilitated a punctual estimation of the potential informs concerning the significance of the parameters. Finally, the quadratic model of Laffer (1981) completed the results of Scully’s model. Overall, the results demonstrate the existence of sub-optimality in the collection of property taxes in WAEMU countries.

Challenges Facing the Property Tax Collection System: a Case Study of the City of Harare Municipality

by | Apr 18, 2022 | AMTJ, AMTJ 2022 I1

Challenges Facing the Property Tax Collection System: a Case Study of the City of Harare Municipality

Author: Simbarashe Hamudi

ISSN: 2709-8575
Affiliations: Transfer Pricing Manager at Tax Matrix
Source: African Multidisciplinary Tax Journal, 2022 Issue 1, p. 288-306
https://doi.org/10.47348/AMTJ/V2/i1a15

Abstract

This article assesses the challenges facing the City of Harare’s property tax collection system and proposes measures to improve revenue collection. The research used interviews and questionnaires to collect data from the selected sample of 180 respondents that included municipality officials as well as 137 residents of Harare and 43 property tax administrators. The research used Excel to analyse the data. The findings from the study show that Harare Municipality is facing administrative challenges that have impacted its ability to meet revenue targets because they are not digitalised. Moreover, major challenges such as unawareness of property tax, inadequacy in the system and challenges associated with the digital era were also identified. This article suggests that the challenges can be resolved by investing in digital technology, infrastructure, taxpayer education, improving service delivery of water, road maintenance, refuse collection and street lighting, reducing political interference and improving transparency on the use of revenue from property tax.

Tax Revenue Potential and Effort in Ethiopia: a Comparative Analysis of Stochastic Frontier Analysis vs Utility Maximisation Function as a New Measure of Tax Effort

by | Apr 18, 2022 | AMTJ, AMTJ 2022 I1

Tax Revenue Potential and Effort in Ethiopia: a Comparative Analysis of Stochastic Frontier Analysis vs Utility Maximisation Function as a New Measure of Tax Effort

Author: Fentaw Leykun Fisseha

ISSN: 2709-8575
Affiliations: Assistant professor of accounting and finance, Bahir Dar University, Ethiopia and head of department of project management, Amhara Leadership Academy, Bahir Dar, Ethiopia
Source: African Multidisciplinary Tax Journal, 2022 Issue 1, p. 307-328
https://doi.org/10.47348/AMTJ/V2/i1a16

Abstract

This article tests the new measure of tax efforts following Dalamagas et al (2019) who  argued that in the context of the Arrow-Debreu economy, with fixed labour supply  and no savings, disposable income is equal to private consumption, a utility function  with two arguments, income, and government spending, is maximised concerning  direct and indirect tax rates. The optimal level of tax revenue is derived from a utility  maximisation process and is shown to be equal to the difference between income and  consumption. As a robustness check, the results of the utility maximisation function  were compared to the findings of the stochastic frontier model. Each model records  very near results for tax effort, tax potential, and tax gaps. The empirical findings  revealed that Ethiopia has a large tax gap and poor tax effort, which is primarily due  to policy choices and enforcement procedures. 

Assessment of the impact of electronic fiscal devices on compliance and VAT collection in Malawi

Assessment of the impact of electronic fiscal devices on compliance and VAT collection in Malawi

by | Dec 18, 2020 | AMTJ, AMTJ 2020 I1

Assessment of the impact of electronic fiscal devices on compliance and VAT collection in Malawi

Authors: James Manuel Kenani (jkenani@mra.mw), Michael Masiya (mmasiya@ataftax.org), Mercy Samantha Njolomole (mnjolomole@mra.mw)

ISSN: 2709-8575
Affiliations: Manager-Tax Policy Analysis & Strategy, Policy Planning & Research Division, Malawi Revenue Authority; Researcher, Research Division, African Tax Administration Forum (ATAF); Manager-Research & Statistics, Policy Planning & Research Division, Malawi Revenue Authority
Source: African Multidisciplinary Tax Journal, 2021 Issue 1, p. 1-21
https://doi.org/10.47348/AMTJ/2021/i1a1

Download PDF

Share

Cite this article

Kenani, JM, Masiya, M and Njolomole, MS
Assessment of the impact of electronic fiscal devices on compliance and VAT collection in Malawi
African Multidisciplinary Tax Journal, 2021 Issue 1, p. 1-21
https://doi.org/10.47348/AMTJ/2021/i1a1

Abstract

The study examined the effectiveness of using electronic fiscal devices (EFDs) in revenue collection and compliance. The study used a quantitative approach for the analysis. Timely filing of tax returns was used as a measure of compliance whereas value-added tax (VAT) revenue collection as a percentage of gross domestic product (GDP) was employed as a measure of revenue collection performance. The data used for the analysis covered July 2005 to June 2019. A sample of 318 taxpayers was used for the analysis of the level of compliance and revenue collection. The sample included a segment of 244 taxpayers using EFDs and 74 taxpayers without EFDs all being small and medium taxpayers. The results indicated that using VAT collection has not increased revenue collection in the period under review as evidenced by a decline after the EFDs were rolled out. The study also found that the mean of growth of VAT revenues in the two periods (pre- and post-EFD implementation) does not reveal any significant difference. We found that taxpayers may be inflating purchases to reduce their tax liability and increase their VAT claims as evidenced by the significance of the change in purchases in pre- and post-EFD periods ‒ the same was evident in sales fluctuations. We further found that the sales-purchases gap is not different between the two periods. In the case of the compliance rate, the findings revealed that EFDs have not been effective in increasing compliance, as shown by a decrease in timely filing of tax returns in the post-EFD era. The study, therefore, concludes that the deployment of EFDs has not resulted in increased VAT collection and compliance during the study period. The study, therefore, recommends that the Authority should consider a system that should pair sales and purchases. Further, the Authority should endeavour to understand the reasons why more taxpayers do not submit returns on time despite having EFDs.

Assessment of the impact of electronic fiscal devices on compliance and VAT collection in Malawi

Analysis of the potential and fiscal effort of the countries of the West African Economic and Monetary Union

by | Dec 18, 2020 | AMTJ, AMTJ 2020 I1

Analysis of the potential and fiscal effort of the countries of the West African Economic and Monetary Union

Authors: Larba Issa Kobyagda (kobiss13@yahoo.fr), Kouadio Yves Arnaud Binin (binin_yves@outlook.fr)

ISSN: 2709-8575
Affiliations: Economiste, ancien Secrétaire permament du Comité de politique fiscale du Burkina Faso; Economiste
Source: African Multidisciplinary Tax Journal, 2021 Issue 1, p. 22-41
https://doi.org/10.47348/AMTJ/2021/i1a2

Download PDF

Share

Cite this article

Kobyagda, LI, Binin, KYA
Analysis of the potential and fiscal effort of the countries of the West African Economic and Monetary Union
African Multidisciplinary Tax Journal, 2021 Issue 1, p. 22-41
https://doi.org/10.47348/AMTJ/2021/i1a2

Abstract

This article aimed to analyse the fiscal potential of member countries of the West African Economic and Monetary Union Commission (WAEMU) space. This issue seems to be relevant insofar as fiscal resources are a function of the states’ budget. The method of analysis used in this paper is the stochastic frontier model of Kumbakar, Lien & Hardaker (2014) for the period 1987-2017. The results showed that the tax burden is determined by structural factors and that in most countries the tax potential can be further exploited. Similarly, the tax effort can be improved for a more visible performance in terms of resource mobilisation in the majority of countries. These results can contribute to improving the choice and decisions of the WAEMU Commission on fiscal policies.