全球智库信息集成服务系统(G2TT): DP9717 Production vs Revenue Efficiency With Limited Tax Capacity: Theory and Evidence From Pakistan

G2TT

来源类型	Discussion paper
规范类型	论文
来源ID	DP9717
	DP9717 Production vs Revenue Efficiency With Limited Tax Capacity: Theory and Evidence From Pakistan
	Henrik Kleven; Michael Best; Johannes Spinnewijn; Mazhar Waseem; Anne Brockmeyer
发表日期	2013-11-03
出版年	2013
语种	英语
摘要	This paper analyzes the design of tax systems under imperfect enforcement. A common policy in developing countries is to impose minimum tax schemes whereby firms are taxed either on profits or on turnover, depending on which tax liability is larger. This production inefficient tax policy has been motivated by the idea that the broader turnover tax base is harder to evade. Minimum tax schemes give rise to a kink point in firms' choice sets as the tax rate and tax base jump discontinuously when one tax liability surpasses the other. Using administrative tax records on corporations in Pakistan, we find large bunching around the minimum tax kink. We show that the combined tax rate and tax base change at the kink provides small real incentives for bunching, making the policy ideal for eliciting evasion. We develop an empirical approach allowing us to put (tight) bounds on the evasion response to switches between profit and turnover taxation, and find that turnover taxes reduce evasion by up to 60-70% of corporate income. Our analysis sheds new light on the use of production-inefficient tax tools in countries with limited tax capacity and can easily be replicated in other contexts as the quasi-experimental variation needed is ubiquitous.
主题	Public Economics
URL	https://cepr.org/publications/dp9717
来源智库	Centre for Economic Policy Research (United Kingdom)
资源类型	智库出版物
条目标识符	http://119.78.100.153/handle/2XGU8XDN/538553
推荐引用方式 GB/T 7714	Henrik Kleven,Michael Best,Johannes Spinnewijn,et al. DP9717 Production vs Revenue Efficiency With Limited Tax Capacity: Theory and Evidence From Pakistan. 2013.