IDEAS home Printed from https://ideas.repec.org/a/khe/scajes/v4y2018i1p21-28.html
   My bibliography  Save this article

Import Base and Revenue Improvement Possibilities in Tanzania

Author

Listed:
  • Fulgence Dominick Waryoba

Abstract

This paper analyzes buoyancy and elasticity estimates of different tax items on import base. Using the Divisia Index approach, the buoyancy estimates have been used to estimate elasticity estimates. The findings reveal positive buoyancy and elasticity estimates. Since the Divisia Index values are positive but less than unit, their logarithm values are negative, making the discretionary portion of the buoyancy estimate to be negative. The negative discretionary portion of the buoyancy estimates resulted into higher values of elasticity compared to buoyancy estimates. The government should broaden the tax base, reduce tax rates and reduce tax exemption in order to improve revenue collection without resorting to higher tax rates. With lower tax rates and higher penalties on tax evasion and tax avoidance, higher government revenue can be realized to meet growing government expenditure.

Suggested Citation

  • Fulgence Dominick Waryoba, 2018. "Import Base and Revenue Improvement Possibilities in Tanzania," Academic Journal of Economic Studies, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 4(1), pages 21-28, March.
    • Handle: RePEc:khe:scajes:v:4:y:2018:i:1:p:21-28
    as

    Download full text from publisher

    File URL: http://www.ajes.ro/wp-content/uploads/AJES_article_1_141.pdf
    Download Restriction: no
    File URL: http://www.ajes.ro/wp-content/uploads/AJES_article_1_141.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Charles Y. Mansfield, 1972. "Elasticity and Buoyancy of a Tax System: A Method Applied to Paraguay (Elasticité automatique et élasticité globale du système fiscal: méthode appliquée au Paraguay) (Elasticidad y reacción de ," IMF Staff Papers, Palgrave Macmillan, vol. 19(2), pages 425-446, July.
    2. Paolo Dudine & Joao Tovar Jalles, 2018. "How Buoyant Is the Tax System? New Evidence from a Large Heterogeneous Panel," Journal of International Development, John Wiley & Sons, Ltd., vol. 30(6), pages 961-991, August.
    3. Alan J. Auerbach & Joel Slemrod, 1997. "The Economic Effects of the Tax Reform Act of 1986," Journal of Economic Literature, American Economic Association, vol. 35(2), pages 589-632, June.
    4. Persson, Torsten & Besley, Tim, 2013. "Taxation and Development," CEPR Discussion Papers 9307, C.E.P.R. Discussion Papers.
    5. repec:cep:stieop:41 is not listed on IDEAS
    6. International Monetary Fund, 2017. "United Republic of Tanzania: Sixth Review Under the Policy Support Instrument and Request for a Six-Month Extension of the Policy Support Instrument-Press Release; Staff Report; and Statement by the E," IMF Staff Country Reports 2017/180, International Monetary Fund.
    7. Upender, M., 2008. "Degree Of Tax Buoyancy In India : An Empirical Study," International Journal of Applied Econometrics and Quantitative Studies, Euro-American Association of Economic Development, vol. 5(2).
    8. G. A Fleming, 1999. "Agricultural support policies in a small open economy: New Zealand in the 1920s," Economic History Review, Economic History Society, vol. 52(2), pages 334-354, May.
    9. Andrew Schmitz & Troy G. Schmitz & Frederick Rossi, 2006. "Agricultural Subsidies in Developed Countries: Impact on Global Welfare," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 28(3), pages 416-425.
    10. Star, Spencer & Hall, Robert E, 1976. "An Approximate Divisia Index of Total Factor Productivity," Econometrica, Econometric Society, vol. 44(2), pages 257-263, March.
    11. Jorgenson, Dale W & Yun, Kun-Young, 1990. "Tax Reform and U.S. Economic Growth," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 151-193, October.
    12. International Monetary Fund, 2016. "United Republic of Tanzania: Selected Issues," IMF Staff Country Reports 2016/254, International Monetary Fund.
    13. repec:aer:wpaper:20 is not listed on IDEAS
    14. Syeda Fizza Gillani, 1986. "Elasticity and Buoyancy of Federal Taxes in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 25(2), pages 163-174.
    15. Vincent Belinga & Ms. Dora Benedek & Ruud A. de Mooij & Mr. John Norregaard, 2014. "Tax Buoyancy in OECD Countries," IMF Working Papers 2014/110, International Monetary Fund.
    16. Pecorino, Paul, 1994. "The Growth Rate Effects of Tax Reform," Oxford Economic Papers, Oxford University Press, vol. 46(3), pages 492-501, July.
    17. Andrew Schmitz & Troy G. Schmitz & Frederick Rossi, 2006. "Agricultural Subsidies in Developed Countries: Impact on Global Welfare ," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 28(3), pages 416-425.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Martina Yakova, 2019. "Tax buoyancy of the EU-28 countries – a comparative analysis," Economic Thought journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 5, pages 59-73.
    2. Audi, Marc & Ali, Amjad & Roussel, Yannick, 2021. "Measuring the Tax Buoyancy: Empirics from South Asian Association for Regional Cooperation (SAARC)," MPRA Paper 109567, University Library of Munich, Germany.
    3. Bibek Adhikari & James Alm, 2016. "Evaluating the Economic Effects of Flat Tax Reforms Using Synthetic Control Methods," Southern Economic Journal, John Wiley & Sons, vol. 83(2), pages 437-463, October.
    4. Chakraborty, Lekha S & Thomas, Emmanuel & Gandhi, Piyush, 2019. "Natural Resources Revenue Buoyancy in India: Empirical Evidence From State-specific Mining Regime," MPRA Paper 99293, University Library of Munich, Germany, revised 2020.
    5. Imtiaz Arif, Lubna Khan, Faheem Hussain, 2017. "Impact of Semi-Autonomous Revenue Authority on Tax Revenue and Buoyancy: Evidence from Pakistan," Journal of Finance and Economics Research, Geist Science, Iqra University, Faculty of Business Administration, vol. 2(2), pages 164-174, October.
    6. Chakraborty, Lekha S. & Thomas, Emmanuel & Gandhi, Piyush, 2020. "Natural Resources Revenue Buoyancy in India: Empirical Evidence From State-specific Mining Regime," Working Papers 20/313, National Institute of Public Finance and Policy.
    7. Ilzetzki, Ethan, 2018. "Tax reform and the political economy of the tax base," Journal of Public Economics, Elsevier, vol. 164(C), pages 197-210.
    8. Nepal Rastra Bank, 2017. "Elasticity and Buoyancy of Taxation in Nepal: A Revisit of the Empirical Evidence," NRB Economic Review, Nepal Rastra Bank, Economic Research Department, vol. 29(1), pages 19-32, April.
    9. Sharma, SK & Das, A, 2018. "EU-Brazil proposal on farm support: strengthening agricultural reforms or undermining them?," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 31(1).
    10. Chen, You-hua & Chen, Mei-xia & Mishra, Ashok K., 2020. "Subsidies under uncertainty: Modeling of input- and output-oriented policies," Economic Modelling, Elsevier, vol. 85(C), pages 39-56.
    11. Wenting Wang & Longbao Wei, 2019. "Impacts of Agricultural Price Support Policies on Price Variability and Welfare: Evidence from China's Soybean Market," Center for Agricultural and Rural Development (CARD) Publications 19-wp592, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    12. Andrew Schmitz & Dwayne J. Haynes & Troy G. Schmitz, 2016. "Alternative Approaches to Compensation and Producer Rights," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 64(3), pages 439-454, September.
    13. repec:gei:journl:v:2:y:2017:i:2:p:165-175 is not listed on IDEAS
    14. Jie Cheng & Laping Wu & Richard W. Dawson, 2008. "Blue Box Policy Reform in the Doha Round Negotiations: Effects and China's Position," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 16(5), pages 83-102, September.
    15. Wang, W. & Wei, L., 2018. "China s Agricultural Price Control Policy and its Price and Welfare Implications: The Case of Soybean," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277342, International Association of Agricultural Economists.
    16. Andersson, Jens & Lazuka, Volha, 2019. "Long-term drivers of taxation in francophone West Africa 1893–2010," World Development, Elsevier, vol. 114(C), pages 294-313.
    17. Schmitz Andrew & Haynes Dwayne J. & Schmitz Troy G., 2013. "Benefit-cost analysis: government compensation vs. consumer tax model," Journal of Benefit-Cost Analysis, De Gruyter, vol. 4(3), pages 375-389, December.
    18. Brima Ibrahim Baimba Kargbo & Adegbemi Festus O. Egwaikhide, 2012. "Tax Elasticity in Sierra Leone: A Time Series Approach," International Journal of Economics and Financial Issues, Econjournals, vol. 2(4), pages 432-447.
    19. Lagravinese, Raffaele & Liberati, Paolo & Sacchi, Agnese, 2020. "Tax buoyancy in OECD countries: New empirical evidence," Journal of Macroeconomics, Elsevier, vol. 63(C).
    20. James B. Davies & Jinli Zeng & Jie Zhang, 2009. "Time‐consistent taxation in a dynastic family model with human and physical capital and a balanced government budget," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 42(3), pages 1023-1049, August.
    21. Slemrod, Joel, 1998. "Methodological Issues in Measuring and Interpreting Taxable Income Elasticities," National Tax Journal, National Tax Association, vol. 51(n. 4), pages 773-88, December.

    More about this item

    Keywords

    Tax base; tax buoyancy; tax elasticity; Divisia index;
    All these keywords.

    JEL classification:

    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:khe:scajes:v:4:y:2018:i:1:p:21-28. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Adi Sava (email available below). General contact details of provider: https://edirc.repec.org/data/ffucdro.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.