Compliance on green tax amongst small medium enterprise owners in the eThekwini district

2021 ◽  
Author(s):  
◽  
Akira Singh
Keyword(s):  
Environmental Sustainability ◽  
Tax Policy ◽  
Tax Compliance ◽  
Well Being ◽  
Business Owners ◽  
Conclusive Evidence ◽  
Manufacturing Processes ◽  
Tax Practitioners ◽  
Two Samples ◽  
The Government

The aim of this study was to explore how green tax compliance is viewed amongst SME business owners and to understand what strategies need to be in place to strengthen the level of compliance. A qualitative research methodology was utilised. Two samples were recruited to participate in this study: Sample 1 included 12 SME business owners, and Sample 2 included 8 tax practitioners. All of the participants were from the eThekwini district. Semi-structured interviews and telephonic interviews were used to collect data from both samples. Data was collected until data saturation was reached. In total, twelve SME business owners and eight tax practitioners were interviewed. The data collected was analysed through the use of thematic analysis, which enabled similar patterns and themes in the data to be pooled together. This gave rise to 5 main themes and 13 related sub-themes. It was found that SME business owners had a positive attitude towards green tax compliance, as they were highly concerned about the sustainability and protection of the environment. There were various factors that hindered green tax compliance by SMEs. These included increased administrative procedures and costs that businesses needed to incur, lack of adoption of green practices in manufacturing processes, incurrence of high costs to comply with this tax, whilst the major finding was the lack of awareness regarding this tax. The study also concluded that business owners were contributing to environmental degradation as they were unaware of the level of damage that their manufacturing processes were causing. It was further established that the government needs to provide adequate information to the public and SMEs regarding the green tax policy. The need for transparency from the government was seen as an important measure to encourage compliance as there is a lack of trust between SMEs and the government. It was also concluded that there is a need for seminars, workshops, and media broadcasts to educate SME owners about the calculation and contribution of green tax policy. There was conclusive evidence for the need for additional, detailed information to be provided to SMEs about the green tax policy in order to encourage green tax compliance to promote environmental sustainability. This study makes a valuable contribution in that it seeks the well- being of local communities and endeavours to preserve the earth by fostering compliance with green taxes.

scholarly journals Taxing Micro, Small and Medium Enterprises in Yogyakarta: Regulation and Compliance

BESTUUR ◽  
2021 ◽  
Vol 9 (1) ◽  
pp. 59
Author(s):  
Siti Rahma Novikasari ◽  
Duc Quang Ly ◽  
Kerry Gershaneck
Keyword(s):  
Tax Policy ◽  
Income Tax ◽  
Government Regulation ◽  
Small And Medium Enterprises ◽  
Tax Avoidance ◽  
Tax Compliance ◽  
Legal Compliance ◽  
The Government ◽  
Medium Enterprises ◽  
Compliance Constraints

<p>Government Regulation No. 46/2013 has not been optimal in providing legal compliance on taxation for Micro, Small, and Medium Enterprises (MSMEs), especially in Yogyakarta. This policy was evaluated and amended with Government Regulation No. 23/2018. The amendment in tax policy for MSME actors was this research background to examine: First, how does the final income tax policy impact MSME taxpayers' compliance in Yogyakarta? Second, what are the legal compliance constraints of MSME taxpayers? The method used in this research was a juridical empirical, supported with the statute and conceptual approach. The results showed that the amendment in the final income tax tariff policy from 1% to 0.5%, as well as provide legal certainty of the timeframe of taxation had a positive impact on increasing taxpayer compliance. There was an increase in the number of taxpayers to 41,000 in 2019, or an increase of 15.5% compared to the number of taxpayers in 2017. However, tariff reduction has not been the answer to taxpayer non-compliance, the Regional Office of the Directorate General of Taxes of the Special Region of Yogyakarta still found tax avoidance. Tax compliance constraints were also caused by taxpayers' distrust of the government, poor tax morale, and tax knowledge. The government needs to conduct a cooperative compliance approach in taxation policies based on trust and dialogue between taxpayers and the government to improve MSME taxpayer compliance.</p><p><strong>Keywords:</strong> Tax Compliance; Final Income Tax Regulation; Micro; Small; Medium Enterprises.</p>

scholarly journals Review Reformasi Sistem Perpajakan di Norwegia: Suatu Pembelajaran bagi Reformasi Perpajakan Indonesia

2020 ◽  
Vol 4 (1) ◽  
pp. 1-13
Author(s):  
Maria R.U.D. Tambunan
Keyword(s):  
Big Data ◽  
Welfare State ◽  
Critical Review ◽  
Tax Policy ◽  
Tax Reform ◽  
Tax Compliance ◽  
Profit Shifting ◽  
Productivity Improvement ◽  
The Government ◽  
Taxation System

ABSTRACTThis article is a critical review and as a means of lesson learned for Indonesia taxation system based on the taxation reform undertaken by Norwegian government as a member of welfare state and OECD, that is considered as a country with high tax ratio. It is also a state which has succeed to realize welfare and income distribution without distort domestic economic stabilization. In this article, it is discussed how the Norwegian government fully aware of the role of tax reform as a mandatory task to reach the state objective by optimizing taxation as instrument of social welfare, productivity improvement and stimulus to realize friendly investment environment. Several tax reform agendas such as reduction of corporate income tax, prevention on profit shifting and until the optimization of the use of big data to support the tax reform. Indonesia on its tax reform agenda which has been commenced in 1983 has transformed significantly for many aspects such as administrative affairs and the way the government to implement the tax policy. These measures have aligned with global tax trend. However, several works remain such less optimize tax ratio during the last one decade.Keywords: tax reform, taxation system, tax administration, tax compliance, tax policy ABSTRAKArtikel ini merupakan critical review sekaligus sebagai sarana pembelajaran bagi sistem perpajakan di Indonesia atas reformasi sistem perpajakan yang dilakukan oleh pemerintah Norwegia sebagai salah satu dari kelompok negara welfare state yang oleh OECD dinilai berhasil memiliki tax ratio yang cukup tinggi sekaligus mampu menciptakan pemerataan penghasilan tanpa mendistorsi kegiatan ekonomi domestik.  Dalam artikel ini diuraikan bagaimana pemerintah Norwegia memahami sepenuhnya bahwa reformasi pajak merupakan suatu keniscayaan untuk mencapai tujuan negara yaitu menggunakan instrumen pajak sebagai instrumen pemerataan sosial, peningkatan produktivitas dan stimulus untuk mewujudkan lingkungan ekonomi yang ramah terhadap investasi. Beberapa agenda reformasi yang diulas seperti kebijakan penurunan tarif pajak penghasilan korporasi, pencegahan terjadinya profit shifting hingga pengoptimalan penggunaan teknologi dan big data dalam sistem perpajakan. Indonesia dalam perjalanan reformasi perpajakan sejak 1983 telah mengalami perubahan yang cukup signifikan baik dalam hal administrasi dan implementasi kebijakan pajak sesuai dengan tren reformasi perpajakan global. Namun, catatan penting dalam perjalanan reformasi perpajakan Indonesia adalah masih rendahnya tingkat kepatuhan dan masih rendahnya tax ratio Indonesia dalam kurun waktu satu decade terakhirKata kunci: reformasi perpajakan, sistem perpajakan, administrasi perpajakan, kepatuhan, kebijakan pajak.

scholarly journals Exit Strategies for COVID 19: An ISM and MICMAC approach

2020 ◽  
Vol 15 (3) ◽  
pp. 94-109 ◽  
Author(s):  
Debashree Das ◽  
Avik Datta ◽  
Patanjal Kumar
Keyword(s):  
World War Ii ◽  
Environmental Sustainability ◽  
Disease Surveillance ◽  
Specific Treatment ◽  
Well Being ◽  
Health Crisis ◽  
Exit Strategies ◽  
State And Local ◽  
The Government ◽  
The Impact

COVID 19 pandemic is the worst crisis that mankind has seen since World War-II. It has exposed glaring loopholes in the healthcare system and led to a global health crisis. In absence of any specific treatment or vaccine, countries began to enforce strict lockdown measures leading to a complete shutdown of economic activities. The purpose of this study is to identify key exit strategies that can be implemented to mitigate the impacts of COVID 19. Identification and categorisation of parameters have been done using multi criterion decision making tool of Interpretive Structural Modelling (ISM) and MICMAC analysis. The study highlights a classification of key strategies based on their driving power and dependence which may enable Government to strengthen the disease surveillance system and effectively reduce the impact of the disease. The findings of the study suggest that Environmental Sustainability and Human Well-being; Online Awareness and Capacity Building Programme; Graded Surveillance- Targeted Restrictions and Stricter norms for Inter-State Mobility; and Harmonization between Centre, State and Local Authorities are the most important strategies that needs to be factored in while planning for the post lockdown economic recovery. Thus, the study can assist the government in devising exit strategies while framing the pandemic response plan.

scholarly journals Analysis of Urban Air Pollution and The Effectiveness of Air Pollution Control Policy in Malaysia: Case Study in Klang Valley, Malaysia

2021 ◽  
Vol 9 (1) ◽  
Author(s):  
Siti Haslina Mohd Shafie ◽  
Suzani Mohamad ◽  
Nor Lita Fadilah Rameli ◽  
Sahala Benny Pasaribu
Keyword(s):  
Air Pollution ◽  
Information System ◽  
Air Quality ◽  
Geographic Information System ◽  
Environmental Sustainability ◽  
Local Community ◽  
Well Being ◽  
Geographic Information ◽  
Klang Valley ◽  
The Government

AbstractAir pollution in Malaysia is largely attributed to motor vehicles and land transportation, industrial activities and open burning. It has a hazardous effect on the public’s health and the environment. This study focuses on the spatial analysis of carbon monoxide (CO) and ozone (O3) concentrations trend in Klang Valley stations, specifically in Klang, Petaling Jaya, Kajang, Shah Alam and Cheras from 2000 to 2009. The study used the Inverse Distance Weighted (IDW) interpolation technique under the Geographic Information System (GIS). This study found that the distribution pattern of CO spatial concentrations in the Klang Valley is the highest concentration and reached 2.5 ppm, especially in Klang and Petaling Jaya stations in 2002 and 2003. However, the annual concentration of O3 recorded in Klang, Petaling Jaya, Kajang, Shah Alam, and Cheras stations from 2004 to 2009 is between 0.01 to 0.025 ppm. While air quality legislations have been introduced in Malaysia, policies and regulations being established by the government, their enforcement is still weak. Subsequently, air pollution is still a significant issue in Malaysia. Strong cooperation between the government, stakeholders and the local community is important to promote environmental sustainability and improve the community’s well-being. Keywords: Air pollution; Geographic Information System (GIS); Air Quality Policy; Malaysia

scholarly journals A Study Between the Taxpayers’ Perception Toward the Tax Policy Changes and the Tax Compliance in Sri Lanka: A Tax Relief in Response to the Impact of Covid-19 Epidemic, and its Implications

2021 ◽  
pp. 52-64
Author(s):  
K. G. Asela Gamini Bandara ◽  
W. M. R. B. Weerasooriya
Keyword(s):  
Sri Lanka ◽  
Tax Policy ◽  
Tax Compliance ◽  
Primary Data ◽  
Policy Changes ◽  
Study Guides ◽  
Tax Relief ◽  
Epidemic Period ◽  
The Government ◽  
The Impact

Purpose – This paper primarily investigates the relationship between the taxpayers’ perception of the tax policy changes and the tax compliance in Sri Lanka. The researcher also aims to provide advice to the policymakers about the specific approach to be followed when considering the tax relief measures and also emphasizing the importance of maintaining a flexible tax policy during the epidemic period which will be crucial in meeting the revenue target of the government. Design/Methodology/approach-The researcher used questionnaires to gather primary data from 125 respondents and then editing to spot errors and omissions for the aim of creating necessary corrections and at last, apply statistical tools for data analysis using SPSS software. Findings – The results show that taxpayers’ attitudes toward the changes in the tax policy and tax compliance form a strong positive relationship and further, changes in its policy have a significant impact on their compliance level. Cronbach’s alpha exceeds 0.7 implies that instruments are sufficiently reliable for the measurement. Originality/value- This was the first study undertaken to explore the link between the attitude toward the tax policy changes and the tax compliance in Sri Lanka during the Covid-19 epidemic period. This study guides to fill up the existing research gap in the country and further, directions are also useful for future researchers to undertake an identical survey.

scholarly journals Tax compliance in an EFD-enabled environment: Evidence from a developing economy

2021 ◽  
Vol 3 (1) ◽  
pp. 53-68
Author(s):  
Agnes Elson Malima ◽  
Surendran Pillay ◽  
Adefemi A. Obalade
Keyword(s):  
Tax Compliance ◽  
Business Owners ◽  
Small Business Owners ◽  
Development Projects ◽  
Chi Square ◽  
External Sources ◽  
The Government ◽  
The Right ◽  
Arusha Region ◽  
Audit Effectiveness

The focus of this study was to assess the contribution of Electronic Fiscal Devices (EFDs) to ensuring tax compliance among small business owners in the Arusha Region in Tanzania. The study was motivated by the fact that the government of Tanzania has invested effort and funds to ensure that revenue adequately supports development projects. Regardless of effort, there is continued reliance on external sources of funds to support development projects. This poses a question on how the introduction of EFDs would increase tax compliance and eventually impact the government income for development projects. The main objective of the study was to determine whether the rate of using EFDs, the level of transparency, fairness in tax procedures, and the perceived audit effectiveness affect the level of tax compliance. Data was analyzed using descriptive procedures, One Way ANOVA, Chi-Square, and ordinal regression. Findings of the study are as follows: First, fairness in tax procedures, the perceived level of transparency and the rate of EFD use had no impact on the level of tax compliance; second, business and EFD use experience, audit effectiveness, and the use of EFDs in tax audits have impacted tax compliance. The study recommends other government departments to consider adopting relevant technology in operational areas where transparency, fairness and compliance are required. The inclusion of other sectors not currently captured by EFD use will be a step in the right direction.

scholarly journals Income Tax Issues on the Omnibus Law and Its Implications in Indonesia

2021 ◽  
Vol 12 (2) ◽  
pp. 164
Author(s):  
Prianto Budi Saptono ◽  
Cyntia Ayudia
Keyword(s):  
Tax Policy ◽  
Income Tax ◽  
Tax Compliance ◽  
Electronic System ◽  
Tax Rates ◽  
Domestic Investment ◽  
Tax Rate ◽  
Income Tax Policy ◽  
The Government ◽  
Using Data

This research has two objectives. The first objective is to analyze the issue of income tax policy based on the idea of taxation omnibus law. In 2020, Law No. 36 of 2008 concerning Income Tax was amended twice as stipulated in Law No. 2 of 2020 and Law No. 11 of 2020 (Job Creation Law). The second objective is to analyze the implications of income tax policy changes on taxation practices in Indonesia. This research is a descriptive qualitative study using data collection techniques in documentation and literature studies. The research concludes that the omnibus law policy aims to encourage domestic investment funding. Income tax issues in Law No. 2 of 2020 include lowering the corporate income tax rate and imposing taxes on trade through an electronic system. Besides, the issue of income tax in Law No. 11 of 2020 includes tax subjects' determination, the territorial system's adoption, tax objects' exclusion, and changes to the provisions on dividends. The implication of the change in income tax policy on taxation practices is that taxes distort the economy. The delegation of regulations for reducing income tax rates to the government through government regulations creates legal uncertainty. Thus, it is necessary to have tax regulations with minimal complexity, not overlap, provide legal certainty, and further encourage voluntary tax compliance.

Land Policy in Vietnam

2011 ◽  
Vol 32 (1) ◽  
pp. 137-146 ◽  
Author(s):  
Malcolm F. McPherson
Keyword(s):  
Environmental Sustainability ◽  
Socioeconomic Development ◽  
Public Investment ◽  
Well Being ◽  
Land Policy ◽  
Residential Areas ◽  
Socialist Republic ◽  
Middle Income ◽  
Income Status ◽  
The Government

Land policy is crucial to Vietnam’s socioeconomic development. Yet, land policy in Vietnam often is short-sighted, resulting in inequities and a form of commons tragedy. In this essay, the author reviews the evolving land policy in the Socialist Republic of Vietnam, pointing out inconsistencies and shortcomings. The essay concludes with recommendations to improve policy and the long-term well-being of Vietnam and its people; specifically, several events should occur for Vietnam to achieve middle-income status by 2020, as the government of Vietnam intends. Rapid industrialization and modernization should continue; land currently used for agriculture (particularly rice) need to be converted to industrial parks; residential areas, and infrastructure; and all land should be used in ways that yields the highest social returns. Public investment should help boost agricultural (and land) productivity; and environmental (and land) management should ensure that the institutions and incentives support environmental sustainability.

Analysing SST 2.0 Burden Using the Guiding Principles of Good Tax Policy

2021 ◽  
Vol 6 (3) ◽  
pp. 167-177
Author(s):  
Nur Erma Suryani Mohd Jamel ◽  
Nadiah Abd Hamid ◽  
Siti Norhayati Zawawi
Keyword(s):  
Sustainable Development ◽  
Tax Policy ◽  
Well Being ◽  
Safety Net ◽  
Jel Classification ◽  
Tax Burden ◽  
Goods And Services ◽  
Guiding Principles ◽  
The Government ◽  
Economic Well Being

Objective - Since the 70s, the Malaysian government has been focusing on sustainable development to improve society's economic well-being. In September 2015, Malaysia reaffirmed this commitment with the other United Nations countries by putting the 2030 Agenda for 17 Sustainable Development Goals (SDGs) into action and focusing on the bottom 40% households (B40). Unfortunately, the implementation of Goods and Services Tax (GST) on 1 April 2015 and followed by the Sales and Services Tax (SST) 2.0 on 1 September 2018 has impacted all income groups, especially the B40, with a claim that indirect tax is regressive and burdensome (MIER, 2018). Hence, the present study aims to analyse SST 2.0 tax burden using the elements of the guiding principles of good tax policy. Methodology/Technique - In this quantitative study, the researchers distributed questionnaires to the B40, M40, and T20 groups throughout Malaysia. Evidently, the government should consider reducing the SST 2.0 tax rate to minimise the tax burden of all groups of income earners based on the ability to pay. Findings - Furthermore, the efficiency of tax administrations is vital to strengthen the enforcement function in controlling the prices of goods and services. The findings can provide useful feedback to policymakers and tax authorities in designing a progressive indirect tax. Novelty - The policymakers should also consider the new SST model and propose relevant social safety net programmes to enhance economic well-being and eradicate inequity. Type of Paper - Empirical. Keywords: SST 2.0; GST; Tax Burden; B40; Guiding Principles of Good Tax Policy. JEL Classification: H31.

PERCEIVED EFFECTS OF STREET HAWKING ON THE WELL-BEING OF CHILDREN IN ANYIGBA, DEKINA LOCAL GOVERNMENT AREA OF KOGI STATE, NIGERIA

2018 ◽  
Vol 8 (1) ◽  
pp. 01-07
Author(s):  
Alfred Eboh
Keyword(s):  
Local Government ◽  
Survey Design ◽  
Sampling Technique ◽  
Well Being ◽  
Local Government Area ◽  
Negative Consequences ◽  
Cross Sectional Survey ◽  
Cross Sectional ◽  
Perceived Effects ◽  
The Government

Background: The hawking of wares by children has been a serious issue confronting the Nigerian society. Children hawk in some of the most horrible conditions conceivable, where they face a serious risk of injury, chronic illness, kidnapping, rape or death. Objective: The focus of this study was to assess the perceived effects of street hawking on the well-being of children in Anyigba, Dekina Local Government Area of Kogi State. Methods: The population of this study consists of parents of the street hawkers in Anyigba while cross-sectional survey design was used through the purposive sampling technique to choose the sample size of one hundred and sixty-two (162) respondents. The validated structured questionnaire and In-Depth Interviews (IDIs) served as the instruments for the data collection respectively. The hypotheses were tested using Chi-Square at a predetermined 0.05 level of significance. The quantitative data were analysed with the aid of the SPSS (version 20). Results: The results indicated among others that street hawking had significant social implications and physical consequences on children's moral behaviour as well as health status in the study area. Conclusion: The study, therefore, concluded that the government of Kogi State should carry out an enlightenment campaign through the media and religious institutions on the negative consequences of street hawking are recommended as panacea. Also, the child right act instrument and its implementation should be strengthened in order to curb street hawking in the study area.

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