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Tax Policy under the Curse of Low Revenues: The Case of Romania (Part II)

Author

Listed:
  • Daianu, Daniel

    (SNSPA, Bucharest)

  • Kallai, Ella

    (Alpha Bank Romania)

  • Lungu, Laurian

    (Cardiff Business School and Macroanalitica, Bucharest)

Abstract

It is an acknowledged fact that the tax revenue to GDP ratio in Romania is extremely low. This article suggests several ways through which budgetary revenues can be increased and, in the process, strengthen fiscal consolidation. Increasing tax collection rates, combating fiscal evasion and bringing parts of the shadow economy into the open would repair a fractured sentiment of fairness in the Romanian society. In particular, the results in this paper show that public sector revenues could rise by the equivalent of 4% of GDP if only half of the informal economy were to be brought to light.

Suggested Citation

  • Daianu, Daniel & Kallai, Ella & Lungu, Laurian, 2012. "Tax Policy under the Curse of Low Revenues: The Case of Romania (Part II)," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(2), pages 143-162, June.
    • Handle: RePEc:rjr:romjef:v::y:2012:i:2:p:143-162
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    Cited by:

    1. Sokolovska, Olena & Sokolovskyi, Dmytro, 2015. "Analysis of dependence of tax behavior on macroeconomic factors: the case of OECD countries," MPRA Paper 69059, University Library of Munich, Germany, revised Jan 2016.
    2. Paolo Brunori & Flaviana Palmisano & Vito Peragine, 2022. "Income taxation and equity: new dominance criteria with a microsimulation application," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 20(3), pages 509-536, September.
    3. Pelinescu, Elena, 2013. "The Mechanisms of Arrears in Romania," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(2), pages 223-239, June.
    4. Madiha MUNIR & Saira TUFAIL & Ather Maqsood AHMED, 2023. "Financial Segmentation and Transmission of Monetary and Real Shocks : Implications for Consumption, Labour, and Credit Distribution," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(3), pages 101-119, October.

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    More about this item

    Keywords

    Budgetary Revenues; Taxation; Implicit Tax Rates; Arrears; Shadow Economy;
    All these keywords.

    JEL classification:

    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance
    • H30 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - General

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