Tax Potential vs. Tax Effort : A Cross-Country Analysis of Armenia's Stubbornly Low Tax Collection / David Grigorian, Hamid Davoodi.

Format:

Book

Government document

Author/Creator:

Grigorian, David.

Contributor:

Davoodi, Hamid.

International Monetary Fund. Middle East and Central Asia Department.

Series:

IMF Working Papers; Working Paper ; No. 2007/106

IMF Working Papers

Language:

English

Subjects (All):

Tax collection--Armenia.

Tax collection.

Taxation--Armenia.

Taxation.

Armenia--Economic conditions.

Armenia.

Physical Description:

1 online resource (40 p.)

Place of Publication:

Washington, D.C. : International Monetary Fund, 2007.

Language Note:

English

Summary:

Despite recording double digit growth since 2000, Armenia's tax-to-GDP ratio has been fairly stable at about 14½ percent. This paper catalogues a range of factors that may account for Armenia's stubbornly for tax collection by benchmarking Armenia's tax-to-GDP against some comparator countries and conducting an extensive econometric study of the main determinants of tax collection. We find empirical support for the hypothesis that the persistence of Armenia's low tax-GDP ratio can be traced to persistence of weak institutions and a large shadow economy. The gap between the potential and actual tax collection in Armenia could be as high as 6½ percent of GDP. We conclude with some policy recommendations that, if adopted, can boost revenue buoyancy.

Contents:

Contents; I. Introduction; II. Armenia's Tax Performance; A. Overall Tax Performance; Tables; 1. Armenia: Tax Revenues of Central Government; Figures; 1. Central Government Tax Revenues, 1993-2004; 2. CIS: Tax Revenue, 1998-2004; B. Direct vs. Indirect Taxes; 3. Armenia: Structure of Central Government's Tax Revenues; 4. CIS: Direct taxes, 1998-2004; 5. CIS: Revenues from Direct taxes, 1998-2004; C. VAT Performance; 2. CIS: Total Tax Revenues vs. Direct Taxes; 6. CIS: Revenues from VAT, 1998-2004; D. Tax Buoyancy; 3. CIS: Tax Revenues vs. VAT Productivity

7. CIS: Tax Revenue buoyancy, 1998-2004III. Tax Revenue Performance under Fund-Supported Programs, 1996-2006; 4. Tax Revenues in Armenia: Performance Under ESAF and PRGF; Box; 1. Armenia's 2005-08 PRGF Program: Tax Policy and Tax and Customs Administration; IV. Cross-Country Regression Analysis; A. Methodology and Data; B. Regression Analysis; 8. Descriptive Statistics; 9. First Stage Panel Regression Results; 10. Second Stage Panel Regression Results; 11. Robustness Tests I; 12. Robustness Tests II; C. Post-estimation Analysis

5. Actual and Potential Tax-to-GDP Ratios for Select Country Groupings, 1990-20046. Actual and Potential Tax Levels, and Tax Effort, 1996-2006; V. Conclusions; References

Notes:

"May 2007".

Includes bibliographical references.

Description based on print version record.

ISBN:

9786613820822

9781462344734

1462344739

9781451999426

1451999429

9781282415898

1282415891

9781451911237

1451911238