In this chapter: Distinguish between different indirect taxes and indicate their relative, importance as sources of revenue, discuss the merits of indirect taxation, describe the consumption type VAT, explain the economic effects of VAT, describe the personal consumption tax base, discuss the rationale for a personal consumption tax,...
Trang 2• Distinguish between different indirect taxes and
indicate their relative
• Importance as sources of revenue
• Discuss the merits of indirect taxation
• Describe the consumption type VAT
• Explain the economic effects of VAT
• Describe the personal consumption tax base
• Discuss the rationale for a personal consumption tax
Trang 3• Discuss the shortcomings of a personal consumption
tax
• Distinguish between patterns of taxation in
industrialised countries and developing countries
• Identify the direction of international tax reform
• Compare tax competition with tax harmonisation
• Contrast international tax reforms with the major tax
reforms in South Africa since the late 1960s
Trang 4• Single-stage commodity tax
• Multi-stage commodity tax
• Excise duties
• Customs duties
• Sumptuary taxes
Indirect taxes are taxes that are imposed on commodities or
market transactions.
Trang 5• Practical
• “Invisible”
• Choice/ability to determine
tax liability
• Achievement of multiple
objectives
• Indexed for inflation
• Simple administration.
• Regressive
• Inefficiencies
• Policy conflict
• Inflationary effect.
Trang 6•
• Restricted-origin principle
• Single vs multiple rates
• Economic effects
– Revenue
– Efficiency and the tax rate
– Equity
– Administration.
Value added tax is a multi-stage sales tax levied on the value
added at the different stages of production.
Trang 7• Equitable
• Efficient
• Return to work effort
• Beneficial to developing
countries.
• Lack of success elsewhere
• Risks
• Administration
• Ability to distinguish between consumption & investment
• Treatment of bequests and gifts
• Transition.
Trang 8• Patterns in industrialised and developing countries
– Predominant sources of revenue
– Importance of tax on individuals vs companies
– Insignificance of payroll, workforce and property taxes – Dependence on general sales tax/VAT
– Significance of trade taxes
• International tax reform
– Base broadening.
Trang 9• Cross-border shopping
• Transfer pricing
• Tax evasion and avoidance
• Pressure to lower taxation levels
Economic globalisation may be defined as the integration of
economies throughout the world through trade, financial flows, the exchange of technology and information, and the movement of people
(Ouattara)
Trang 11• Independent revenue authority
• Tax amnesty
• Single rate structure
• VAT for gambling and fee-based financial services
• Tax on interest, rental and other trading income
introduced and abolished
• Introduction of capital gains tax
• Residence-based income tax
• Lowering of company tax rate for small businesses.
Trang 12• Tax incentives to promote direct investment
• Secondary tax on companies replaced with dividend
tax
• Abolishment of RSC and JSB levies
• Environmental charges and incentives
• National health insurance (NHI) to be phased in