Assessing Tanzanians’ Response to the Implementation of a Mobile Money Transaction Levy

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

Assessing Tanzanians’ Response to the Implementation of a Mobile Money Transaction Levy

Author: Francis Nyonzo

ISSN: 2709-8575
Affiliations: Programs Officer and economist at Jamii Forums with expertise in digital economy and social justice.
Source: African Multidisciplinary Tax Journal, Volume 4, Issue 1 (2024), p. 167–186
https://doi.org/10.47348/AMTJ/V4/i1a9

Abstract

This paper analyses the effects of the mobile money transaction levy in Tanzania. The data used in the study was obtained from the Bank of Tanzania and the Tanzania Communications Regulatory Authority. The study employs interrupted time series analysis to determine the impact of the government levy on mobile money transactions. The results show a significant decrease in the total amount transacted and the average amount per subscriber after the introduction of the levy. The results indicate that the intervention had a significant impact on the average money transacted by subscribers. The study suggests that policymakers should consider alternative revenue sources other than those which affect the government revenue negatively. Further, the government should encourage people to use mobile money to pay for goods and services to increase government revenue.

Does the Quality of ICT have an Effect on Tax Revenue Collection in Africa?

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

Does the Quality of ICT have an Effect on Tax Revenue Collection in Africa?

Author: Katamantou Woenagnon

ISSN: 2709-8575
Affiliations: Gestionnaire des déclarations fiscales à l’Office Togolais des Recettes (OTR)
Source: African Multidisciplinary Tax Journal, Volume 4, Issue 1 (2024), p. 187–207
https://doi.org/10.47348/AMTJ/V4/i1a10

Abstract

This article examines the effect of the quality of information and communication technologies (ICT) on tax revenue collection in Africa. Starting with a sample of 48 countries, observed over the period 1986 – 2017, we use a cointegration model in panel data using fully modified ordinary least squares (FMOLS) technique for the basic analysis. To check robustness, we use dynamic ordinary least squares (DOLS) and canonical cointegration regression (CCR). The results show that the quality of ICT measured in terms of its bandwidth in kilobits per second, contributes positively and significantly to the collection of tax revenues. The findings suggest that development policies should be geared towards fostering both more and better ICTs. In this sense, African states should invest massively in high-speed fiber optic networks, serving the entire extent of their countries to allow tax administrations use of more advanced technologies.

The Effects of Exchange Rate Dynamics on Tax Revenues Collection: Evidence from Malawi Between 1990 and 2022

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

The Effects of Exchange Rate Dynamics on Tax Revenues Collection: Evidence from Malawi Between 1990 and 2022

Author: Khumbolane George Chavula

ISSN: 2709-8575
Affiliations: Malawi Revenue Authority, Policy Planning and Research, P/Bag 247, Msonkho House
Source: African Multidisciplinary Tax Journal, Volume 4, Issue 1 (2024), p. 208–226
https://doi.org/10.47348/AMTJ/V4/i1a11

Abstract

Exchange rate dynamics play a critical role in the determination of tax revenue collection yet remain underexplored in the literature for both Malawi and other sub-Saharan countries. This study addresses this gap by examining the impact of exchange rate dynamics, including devaluation policies and changes in exchange rate regimes on tax revenue collection in Malawi. Using time series secondary data from 1990 to 2022 and employing vector autoregressive (VAR) estimation techniques, the study finds that changes in factors such as exchange rates and the exchange rate regime Granger cause variations in Malawi’s tax revenues. The findings suggest that aligning tax reforms with the recognition of foreign exchange gains or losses could enhance domestic revenue mobilisation efforts, particularly through effectively taxing external currency-denominated assets and broadening the tax base.

Budget Deficit Financing and Economic Well-Being in Benin: Testing the Ricardian Equivalence Theory

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

Budget Deficit Financing and Economic Well-Being in Benin: Testing the Ricardian Equivalence Theory

Authors: Ahouidji Tanguy Agbokpanzo*, Symphorien Zogbasse†, Prince Kuessi Houssou‡, Jonhson Lazare Amèdjiko Houessou§, Alastaire Sèna Alinsato¶

ISSN: 2709-8575
Affiliations: * Université d’Abomey-Calavi (UAC), Laboratoire d’Economie Publique (LEP), † Université d’Abomey-Calavi (UAC) Laboratoire d’Economie Publique (LEP), ‡ Université d’Abomey-Calavi (UAC), Laboratoire d’Economie Publique, § Laboratoire d’Economie Publique (LEP), ¶ Université d’Abomey-Calavi (UAC), Laboratoire d’Economie Publique (LEP).
Source: African Multidisciplinary Tax Journal, Volume 4, Issue 1 (2024), p. 227–248
https://doi.org/10.47348/AMTJ/V4/i1a12

Abstract

This article examines the validity of Ricardian equivalence theory in Benin over the period 1980 to 2020. The study uses a time series with the Autoregressive Long-Lived Regressions (ARDL) model. The results show that budget deficit financing has a positive effect on household consumption in the short term, and a negative effect in the long term. On the other hand, budget deficit financing has a positive effect on gross domestic product in the short term and no significant effect in the long term. These results suggest that budget deficit financing has different short- and long-term effects on economic well-being in Benin. Consequently, policymakers should consider complementary strategies to support long-term economic growth and ensure the sustainability of fiscal policies.

Effects of the Macroeconomic Environment, Policy and Administrative Measures on Revenue Performance: The Case of Nigeria (2010–2021)

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

Effects of the Macroeconomic Environment, Policy and Administrative Measures on Revenue Performance: The Case of Nigeria (2010–2021)

Authors: Zainab Sindigawo Mohammed*, Olakunle O. Oke†, Muhammad Salisu Aminu‡, Aisha Mahmoud Hamman§, Joy Agbo Ojobo¶

ISSN: 2709-8575
Affiliations: * PhD (Sud), MA (Nig), PGDE (Nig), BA History (Nig); Federal Inland Revenue Service (FIRS), No.16, Annex 2, Sokode Crescent, Wuse Zone 5, Abuja, Nigeria, Department of Research and Statistics, † BSc, Information Systems Science; FIRS, Department of Research and Statistics; Université d’Abomey-Calavi, Benin, ‡ BSc, Economics; FIRS. Department of Research and Statistics, § PhD, MSc, MBF, BSc, CAN, ACTI; FIRS, Department of Research and Statistics, ¶ BSc, Economics; FIRS, Department of Research and Statistics
Source: African Multidisciplinary Tax Journal, Volume 4, Issue 1 (2024), p. 249–264
https://doi.org/10.47348/AMTJ/V4/i1a13

Abstract

This study examines the impact of specific macroeconomic variables on tax revenue performance in Nigeria. Utilising quarterly time series data from 2010 to 2021, sourced from various secondary references, the study employs a variance inflation factor (VIF) test to check for multicollinearity. The analysis is conducted using a multiple regression model. The findings indicate that the gross domestic product (GDP) has an insignificant positive effect on tax revenue in Nigeria. Conversely, the inflation rate and employment negatively affect tax revenue generation, although the influence of unemployment on tax revenue is statistically insignificant. The f-statistic value of the model confirms that the combination of the variables studied significantly impacts tax revenue. Therefore, the study concludes that macroeconomic variables are crucial determinants of tax revenue generation in Nigeria. It recommends that the Nigerian Revenue Authority should take measures to strengthen the relationship between GDP and tax revenue.