IDEAS home Printed from https://ideas.repec.org/a/spr/snbeco/v2y2022i9d10.1007_s43546-022-00319-x.html
   My bibliography  Save this article

Machine leaching approaches to assess public attitude towards value-added tax in Saudi Arabia

Author

Listed:
  • Nahid Sultana

    (Imam Abdulrahman Bin Faisal University)

Abstract

Value added tax (VAT) is one of the highly powerful government revenue resources. The public perception of VAT is an important area of empirical research in business, economics, and social sciences. Saudi Arabia implemented VAT on January 1, 2018. This study explores Saudi residents' awareness, attitude, and acceptance towards VAT. A total of 405 responses were collected via an online random survey. The Chi-square test was conducted to assess the association of the respondent's views on the positive impact of the VAT system with relevant attributes. About 62% of the respondents think that VAT cannot reduce their social obligations, while 57% of consumers believe that it has no positive impact on Saudi Arabia, indicating that most consumers do not have a very high level of positive attitude towards VAT implementation. Two competing machine learning algorithms, viz., logistic regression analysis and C5.0 decision tree, were applied in developing the empirical models to predict residents' perceptions concerning the positive impact of VAT. The predictor importance charts for the developed models were also analyzed. The results indicated that both models' performances are comparable; however, decision tree model predictions are closer to the actual responses. The decision tree showed high accuracy values (97.78%) and a higher area under the receiver operating characteristic (ROC) curve (0.991), suggesting that the results are highly feasible. The decision-makers could consider the significant factors determined in this study to make an efficient strategy for motivating the consumers towards the VAT system.

Suggested Citation

  • Nahid Sultana, 2022. "Machine leaching approaches to assess public attitude towards value-added tax in Saudi Arabia," SN Business & Economics, Springer, vol. 2(9), pages 1-18, September.
    • Handle: RePEc:spr:snbeco:v:2:y:2022:i:9:d:10.1007_s43546-022-00319-x
    DOI: 10.1007/s43546-022-00319-x
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s43546-022-00319-x
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s43546-022-00319-x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Timothy J. Bartik & George Erickcek, 2014. "Simulating the Effects of the Tax Credit Program of the Michigan Economic Growth Authority on Job Creation and Fiscal Benefits," Economic Development Quarterly, , vol. 28(4), pages 314-327, November.
    2. Glenn Jenkins & Rup Khadka, 1998. "Value Added Tax Policy And Implementation In Singapore," Development Discussion Papers 1998-02, JDI Executive Programs.
    3. Sijbren Cnossen, 1998. "Global Trends and Issues in Value Added Taxation," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 5(3), pages 399-428, July.
    4. Keith R. Ihlanfeldt, 1995. "Ten Principles for State Tax Incentives," Economic Development Quarterly, , vol. 9(4), pages 339-355, November.
    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. Jason L. Saving & Alan D. Viard, 2015. "Are income taxes destined to rise? the fiscal imbalance and future tax policy," Working Papers 1502, Federal Reserve Bank of Dallas.
    2. Timothy J. Bartik & Nathan Sotherland, 2019. "Local Job Multipliers in the United States: Variation with Local Characteristics and with High-Tech Shocks," Upjohn Working Papers 19-301, W.E. Upjohn Institute for Employment Research.
    3. Haufler, Andreas & Schjelderup, Guttorm, 2004. "Tacit collusion and international commodity taxation," Journal of Public Economics, Elsevier, vol. 88(3-4), pages 577-600, March.
    4. José Mª Durán-Cabré & Alejandro Esteller-Moré, 2014. "Tax professionals' view of the Spanish tax system: efficiency, equity and tax planning," Working Papers 2014/5, Institut d'Economia de Barcelona (IEB).
    5. Darin Wohlgemuth & Maureen Kilkenny, 1998. "Firm Relocation Threats and Copy Cat Costs," International Regional Science Review, , vol. 21(2), pages 139-162, August.
    6. Andreas Haufler & Michael Pflüger, 2003. "Market Structure and the Taxation of International Trade," Discussion Papers of DIW Berlin 370, DIW Berlin, German Institute for Economic Research.
    7. Zee, Howell H., 2005. "A New Approach to Taxing Financial Intermediation Services Under a Value–Added Tax," National Tax Journal, National Tax Association;National Tax Journal, vol. 58(1), pages 77-92, March.
    8. Thomas Stratmann, 2017. "The political economy of sales taxes and sales tax exemptions," Public Choice, Springer, vol. 171(1), pages 207-221, April.
    9. Silvia Fedeli & Francesco Forte, 2012. "Border Tax Adjustment without Borders: The EU Carousel of VAT Fraud," Review of Economics & Finance, Better Advances Press, Canada, vol. 2, pages 55-70, November.
    10. José Sánchez Maldonado & Salvador Gómez Sala, 2006. "The Reform of Indirect Taxation in Spain: VAT and Excise," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper0607, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    11. Homburg, Stefan, 2010. "Allgemeine Steuerlehre: Kapitel 1. Grundbegriffe der Steuerlehre," EconStor Books, ZBW - Leibniz Information Centre for Economics, number 92547, August.
    12. Mare, Mauro, 2015. "Why and How should the EU budget be reformed?," MPRA Paper 76112, University Library of Munich, Germany.
    13. Sijbren Cnossen, 2002. "Tax Policy in the European Union: A Review of Issues and Options," CESifo Working Paper Series 758, CESifo.
    14. Haufler, Andreas & Schielderup, Guttorm, 1999. "Tacit Collusion under Destination - and Origin-Based Commodity Taxation," CoFE Discussion Papers 99/17, University of Konstanz, Center of Finance and Econometrics (CoFE).
    15. Harvey S. Rosen, 2002. "Public Finance: Essay for the Encyclopedia of Public Choice," Working Papers 122, Princeton University, Department of Economics, Center for Economic Policy Studies..
    16. Mohamad Ali Roshidi Ahmad & Zuriadah Ismail & Hazianti Abdul Halim, 2016. "Awareness and Perception of Taxpayers towards Goods and Services Tax (GST) Implementation," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 6(11), pages 75-94, November.
    17. repec:rre:publsh:v:38:y:2008:i:2:p:233-50 is not listed on IDEAS
    18. Haufler, A. & Schjelderup, G. & Stahler, F., 2000. "Commodity Taxation and International Trade in Imperfect Markets," Papers 17/00, Norwegian School of Economics and Business Administration-.
    19. John Dove & Daniel Sutter, 2018. "Is There a Tradeoff Between Economic Development Incentives and Economic Freedom? Evidence from the US States," The Review of Regional Studies, Southern Regional Science Association, vol. 48(1), pages 55-69, Spring.
    20. Marwin Heinemann & Wojciech Stiller, 2023. "Digitalization and Cross-Border Tax Fraud: Evidence from E-Invoicing in Italy," CESifo Working Paper Series 10227, CESifo.
    21. Benjamin Austin & Edward Glaeser & Lawrence Summers, 2018. "Jobs for the Heartland: Place-Based Policies in 21st-Century America," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 49(1 (Spring), pages 151-255.

    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:spr:snbeco:v:2:y:2022:i:9:d:10.1007_s43546-022-00319-x. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.