Determinants of Implicit Tax in Kaduna State, Nigeria

by | Jul 3, 2024 | AMTJ, AMTJ 2024 I1

Determinants of Implicit Tax in Kaduna State, Nigeria

Authors: Alhasan Usman*, Aisha Musa Bindawa†, Bilkisu Inuwa Jibril‡

ISSN: 2709-8575
Affiliations: * PhD; Federal Inland Revenue Service, Nigeria, † Federal Inland Revenue Service, Nigeria, ‡ Federal Inland Revenue Service, Nigeria,
Source: African Multidisciplinary Tax Journal, Volume 4, Issue 1 (2024), p. 292–316
https://doi.org/10.47348/AMTJ/V4/i1a15

Abstract

This paper investigates the impact of the tax compliance rate and corruption perception on implicit tax in Kaduna State, Nigeria. Data was collected through questionnaires and analysed using Endogeneity, Breusch-Pagan-Godfrey heteroskedasticity and Variance Inflation Factor tests. A Two Stage Least Square Regression Model was used to analyse the data, involving 523 questionnaires. The study found that income levels, corruption perception and public confidence in government have a significant positive impact on implicit tax in the state, and the tax compliance rate has an insignificant negative impact on implicit tax in the state. The study concluded that corruption is the main factor affecting the ability of the Kaduna State government to provide adequate public services in the state, and corruption increases the level of implicit tax. The Kaduna State government should make fighting corruption a priority, as this will help the government to save more, and to provide more public goods and services in the state.

The Effect of Regional Electronic Cargo Tracking Systems on Cargo Safety at the Kenya Revenue Authority

by | Jul 3, 2024 | AMTJ, AMTJ 2024 I1

The Effect of Regional Electronic Cargo Tracking Systems on Cargo Safety at the Kenya Revenue Authority

Author: Carolyn Gitegi Wakuka

ISSN: 2709-8575
Affiliations: Kenya Revenue Authority
Source: African Multidisciplinary Tax Journal, Volume 4, Issue 1 (2024), p. 317–343
https://doi.org/10.47348/AMTJ/V4/i1a16

Abstract

The Regional Electronic Cargo Tracking System (RECTS) was adopted by the Kenya Revenue Authority (KRA) to enhance cargo security and boost revenue collection. RECTS is aimed at addressing inefficiencies in vendor-operated Electronic Cargo Tracking Systems (ECTs) whose geo-fence routes can be manipulated, making it challenging to determine the exact location of the cargo. Their failure to send alerts on seal tampering and diversions has resulted in a substantial loss of revenue. This study sought to assess the impact of RECTS on cargo security with a focus on KRA customs operations. The study addressed the impact of RECTS cargo tracking on cargo security, the impact of RECTS cargo monitoring on cargo security, and the measurement of the impact of RECTS real-time response on cargo security at KRA. The research adopted a descriptive research design. The target population for this study was the 140 Rapid Response Units (RRU) and the Cargo Monitoring Unit (CMU) staff working at the five designated RRU stations along the Northern Corridor. Stratified simple random sampling was used to select 104 KRA staff to participate in the study. The primary data was collected by means of a self-administered questionnaire provided to the staff working at the five designated stations. Secondary data was collected from the records of the Cargo Monitoring Unit on incidents of theft, tampering and damage of cargo. The data was analysed using SPSS to compute descriptive and inferential statistics. The study established that the independent variables of cargo tracking, cargo monitoring and real-time response, significantly influence the dependent variable as they account for an 82.90 per cent variation in cargo security. The results of a multiple regression analysis established that cargo tracking has a positive and significant effect on cargo security (β1=0.873, p=0.000); that cargo monitoring has a positive and significant effect cargo security (β2=0.175, p=0.015); and that real-time response has a positive and significant effect cargo security (β3=0.222, P=0.000). The findings of the study revealed that cargo tracking enhances the security of the cargo by deterring cases of cargo diversion and by providing the exact location of the stolen, damaged or tampered cargo enabling the Rapid Response Unit to locate the cargo and resolve the situation immediately. Cargo monitoring enhances cargo security by providing real-time alerts in respect of cargo seal tampering which minimises the tampering that previously occurred during changeover of seals at border points. Additionally, real-time response enhances the security of cargo by reducing the time taken by the Rapid Response Unit to respond to and resolve cases of theft, tampering and cargo accidents during transit.

Impact of the AFCFTA on Tax Revenue in Togo

Impact of the AFCFTA on Tax Revenue in Togo

by | May 21, 2023 | AMTJ, AMTJ 2023 I1

Impact of the AFCFTA on Tax Revenue in Togo

Authors: Akouété Paulin Bate and Doouda Guedikouma

ISSN: 2709-8575
Affiliations: Docteur en économie, Chargé de la planification stratégique à la Direction des études et de
la planification stratégique de l’Office Togolais des Recettes (OTR); Inspecteur des impôts, Chef section de vérification à la Direction des grandes entreprises de l’Office Togolais des Recettes (OTR)
Source: African Multidisciplinary Tax Journal, 2023 Issue 1, p. 1–19
https://doi.org/10.47348/AMTJ/V3/i1a1

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Bate, A P and Guedikouma, D
Impact of the AFCFTA on Tax Revenue in Togo
African Multidisciplinary Tax Journal, 2023 Issue 1, p. 1–19
https://doi.org/10.47348/AMTJ/V3/i1a1

Abstract

The aim of this study is to examine the impact of the AfCFTA on Togolese tax revenue. The schematic facts and the gravity model applied to data from 51 countries including 41 African countries and 10 non-member countries of the AfCFTA confirm our hypothesis that the AfCFTA positively inf luences imports and exports of goods and services and generates short-term negative effects in the form of loss of tax revenue (customs duties). Thus, the schematic facts show that Togo’s imports of goods and services from African countries increased from 159.76 billion CFA francs in 2019 to 199.71 billion CFA francs in 2021, an increase of 25%. They also show that over the period 2019 to 2021, the customs duties collected amounted to an average of 54.09 billion CFA francs. This study estimates that if AfCFTA legislation had been in force since 2019, Togo would have lost an amount of around 54 billion CFA francs in customs duties. The gravity model estimates also show that AfCFTA would lead to an increase in trade between Togo and its partners and, in turn, an increase in domestic tax revenue of 2.809% and 3.532% respectively. These results urge public decision-makers to promote Togo’s specialisation in the production of goods and services for which it has a comparative advantage. This strategy will enable Togo to produce more goods and services at lower costs in order to sell them within AfCFTA and reduce unemployment.

Impact of the AFCFTA on Tax Revenue in Togo

What Drives the Tax Compliance Levels of Sole Traders in South Africa?

by | May 21, 2023 | AMTJ, AMTJ 2023 I1

What Drives the Tax Compliance Levels of Sole Traders in South Africa?

Authors: Cathrine Thato Koloane, Mangalani Peter Makananisa, Sandisiwe Sityoshwana and Thabisa Tokwe

ISSN: 2709-8575
Affiliations: Senior Specialist: Market Research, National Revenue and Compliance Division, Operational Research Unit at the South African Revenue Service; Specialist: Statistical Support, National Revenue and Compliance Division, Operational Research Unit at the South African Revenue Service; Functional Specialist Research, SMME, Traders and Travellers Segment at the South African Revenue Service; Senior Researcher, SMME, Traders and Travellers Segment at the South African Revenue Service
Source: African Multidisciplinary Tax Journal, 2023 Issue 1, p. 20–44
https://doi.org/10.47348/AMTJ/V3/i1a2

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Koloane, C T, Makananisa, M P, Sityoshwana, S and Tokwe, T
What Drives the Tax Compliance Levels of Sole Traders in South Africa?
African Multidisciplinary Tax Journal, 2023 Issue 1, p. 20–44
https://doi.org/10.47348/AMTJ/V3/i1a2

Abstract

The study examined the drivers of levels of tax compliance of sole traders in South Africa. The study adopted a quantitative research approach where a sample of 500 sole traders was selected from a database of 146 075 active sole traders for the fiscal year 2020/21. A survey questionnaire was used to collect primary data from the participants. Only 194 sole traders responded to the questionnaire, resulting in a response rate of 39 per cent. Descriptive and inferential statistics, as well as multiple linear regression, were used to conduct the analysis. The study revealed that the tax compliance level of sole traders is inf luenced by whether their friends and relatives pay all their taxes and whether they have too much debt, which discourages tax compliance. The study recommended targeted taxpayer education and awareness, tax alleviation measures for sole traders, and government transparency in expenditure management policy, amongst other things. The study makes an important contribution to the body of knowledge in this research area and provides much-needed insights on how to improve the tax compliance levels of sole traders.

Foreign Aid and Domestic Revenue Mobilisation in Conflict-Affected Countries

by | May 21, 2023 | AMTJ, AMTJ 2023 I1

Foreign Aid and Domestic Revenue Mobilisation in Conflict-Affected Countries

Authors: Souleymane Diarra, Maimouna Diakite, Sampawende J.-A. Tapsoba and Tertius Zongo

ISSN: 2709-8575
Affiliations: West African Economic and Monetary Union (WAEMU) Commission; World Bank Group, EFI Africa Region; African Department, International Monetary Fund, Washington, DC, USA; Fondation d’Études et de Recherches sur le Développement International (FERDI)
Source: African Multidisciplinary Tax Journal, 2023 Issue 1, p. 45–68
https://doi.org/10.47348/AMTJ/V3/i1a3

Abstract

In recent years, there has been increasing interest in the impact of conflict on taxation, and a few articles have focused on aid effectiveness in conflict-affected countries. Although both aid and conflict have been identified as major determinants of tax performance, there is little agreement on the nature of their individual and joint effects on taxation. This study contributes to this debate by considering a sample of 123 developing countries over the period 1984 to 2014. Our findings show that aid granted during a period of conflict positively affects revenue collection, and this impact increases with technical assistance. A deeper analysis demonstrates a nonlinear relationship between aid provided during times of conflict and domestic revenue mobilisation. The institutional environment appears to be a factor that may mitigate, and even reverse, the nature of the relationship between aid and revenue mobilisation.

Free Trade and Tax Efficiency in the West African Economic and Monetary Union: what can we learn for the AFCFTA?

by | May 21, 2023 | AMTJ, AMTJ 2023 I1

Free Trade and Tax Efficiency in the West African Economic and Monetary Union: what can we learn for the AFCFTA?

Authors: Calixe Bidossessi Alakonon and Alastaire Sèna Alinsato

ISSN: 2709-8575
Affiliations: Laboratoire d’Economie Publique, Université d’Abomey-Calavi, Benin; Laboratoire d’Economie Publique, Université d’Abomey-Calavi, Benin
Source: African Multidisciplinary Tax Journal, 2023 Issue 1, p. 69–89
https://doi.org/10.47348/AMTJ/V3/i1a4

Abstract

The aim of this paper is to examine the effect of free trade on the tax efficiency of West African Economic and Monetary Union (WAEMU) countries. Specifically, the objective is, on the one hand, to determine the tax efficiency levels of the various taxes, and, on the other hand, to determine the influence of the common external tariff and trade openness on the tax efficiency of the various taxes in WAEMU countries. Using panel data over the period from 1980 to 2019, a stochastic tax frontier model is estimated to determine tax efficiency scores. A censored Tobit model is then used to assess the effect of free trade on the tax efficiency of countries. The results show respective average tax efficiency scores of 75.494%; 3.355%; 69.312% and 60.336% for total tax, direct tax, indirect tax and tax on foreign trade in WAEMU. In addition, the common external tariff and trade openness positively influence the tax efficiency of countries. However, the interaction between free trade and structural transformation, the quality of tax administration and income inequality reduce the tax efficiency of taxes. Decision-makers need to urgently take into consideration the structural transformation of economies, and the improvement of the efficiency of tax administrations in order to benefit from the application of the AfCFTA.