In 2005, the German government announced a far-reaching fiscal adjustment program. This paper uses the IMF's Global Fiscal Model to study its impact and explores options for addressing long-term pressures from population aging. The growth effects of the planned VAT increase are likely modest,...

This paper investigates whether tax evasion creates incentives among firms to reorganize their production under Value-added Tax (VAT). VAT is world's most popular consumption tax and is considered revenue efficient since cross-reporting of firm-to-firm transactions facilitates self- enforcement....

Most sub-Saharan African countries are characterized by low tax compliance and low tax productivity. This study tests the effects of a tax lottery under alternative reward designs on compliance as an alternative policy option for addressing the problem of low tax receipts in Tanzania. The lab...

This paper characterizes the shape of the Laffer curve for consumption tax analytically, considering (i) the functional form of utility and (ii) the use of tax revenue in a neoclassical general equilibrium model. The tax revenue curve for consumption tax cannot be hump-shaped if the utility...

By using official time series of the Italian evaded VAT base (Ministry of Finance) for the period 1980-2004 we investigate empirically the long-run characteristics of tax evasion and the relationship with the tax burden. We focus on three important issues not analyzed so far. First, using...

The paper aims to provide quantitative background for policy prescriptions in EU Member States facing dependence on value added tax revenues. Our methods include a descriptive analysis and also an empirical study on the main determinants of value added tax revenues that resorts to panel...

One of the fundamental technical elements of this tax is the scope of VAT, which usually is the delivered goods, services provided and work performed within a country. And thanks to the destination principle, exports are taxed at a zero rate, which is equivalent to the VAT exemption, but without...

The paper examines the VAT gap estimated on the basis of VAT tax returns. The assessment of tax gap dependence is examined based on macroeconomic influences and the measures of the Slovenian fiscal administration. Regarding the latter, the number of audits being performed and the effects of...

The common VAT system adopted by EU member states comprises a set of various rates, which differentiate the goods and services subject to this tax. However, from a technical and management point of view, it would be preferable to adopt a single tax rate as it reduces distortions and facilitates...