Abstract

Value-added tax (VAT) withholding tax is a key instrument used in various tax administrations to curb revenue leakages that emanate from clients that charge VAT on their services and supplies and then fail to remit it to revenue authorities. The Zimbabwe Revenue Authority (ZIMRA) implemented VAT withholding in 2017 with the expectation that it would positively affect VAT compliance. The motivation of this study therefore arises from the knowledge that a number of developing countries are considering implementing a withholding tax mechanism on VAT. In addition, a number of developing countries such as the Philippines, Ethiopia and Ghana, have implemented VAT withholding tax with varying outcomes. Public finance literature on the empirical analysis of VAT withholding tax is, however, limited as it requires administrative data that most tax researchers are not privy to. This paper sought to undertake a more comprehensive empirical investigation of the direct effect of the introduction of VAT withholding tax on VAT compliance. To estimate the empirical effect of VAT withholding tax on VAT compliance, this paper exploited data of VAT registered clients in ZIMRA over a 24-month period. The study used an ordinary least squares (OLS) multiple regression analysis to investigate the effects of VAT withholding tax on VAT revenue. The study further used a difference-in-differences estimator by classifying VAT taxpayers into two groups. Empirical evidence indicates that there is a positive significant relationship between implementing VAT withholding tax and VAT revenue in the ZIMRA scenario.

Abstract

The tax reform to replace turnover tax with value-added tax (VAT) in Congolese tax legislation, in order to broaden the tax base, was justified by the government’s desire to increase levels of state revenue. This tax was introduced in 2010 and implemented in 2012.

Although its contribution has improved the level of tax revenue, certain managerial aspects linked to it have not been exploited to significantly improve resource mobilisation objectives. In particular, the fixed threshold has excluded certain structures, the synthetic tax centres in particular, who are in direct contact with the vast majority of consumers, from the management of this tax.

Abstract

Governments are weak at promoting and endorsing their gains and programmes. Taking Uganda in context, this paper explored the current tools for public tax awareness on Domestic Revenue Mobilisation (DRM), an oft-neglected area yet crucial for tax revenue generation. The note overviewed the DRM initiatives and the public tax awareness programmes in place to promote them. Using content analysis, the inquiry noted gaps in the planning of public tax awareness initiatives, which inf luences the execution, impact and appraisal of the campaigns, which in turn, affects the uptake of DRM initiatives. It calls for government accountability where all government agencies use public tax awareness tools to account for their plans and gains. It furthermore requires not leaving accountability to the finance ministry and the tax agency. Highlighting successful government programmes courtesy of tax revenue motivates citizens aboard DRM. This paper therefore averred that concerted government public relations will motivate citizenry participation and support for DRM.

Abstract

This paper considered the historical perspective of women and taxation, as well their economic status in the Organisation for Economic Co-operation and Development (OECD) countries, Afrika, and South Africa as a special focus. The case was made that women are globally worse off economically than their male counterparts; but that Afrikan women specifically come off the worst. Women also suffer fiscal discrimination, yet they bear unique tax burdens like Pink Tax, Afrikan (Black) Tax for women in Afrika, individualised Pay as You Earn which ultimately discriminates against women-headed households, and women breadwinners. Even at the periphery of the economy, they shoulder value-added tax (VAT) the same as men. Given the forecasted Afrikan population growth, Afrikan women remain an untapped resource for the digital economy. Yet gender representation and equity in the current efforts for global tax governance restructuring are lacking. Hence there exists a need for the African Tax Administration Forum (ATAF) to champion a gendered and youthful perspective in digital tax transformation, and pioneer tax disaggregation by categorising women according to socio-economic profiles.