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on Informal and Underground Economics |
| By: | Priya Manwaring; Tanner Regan |
| Abstract: | Public disclosure policies have potential to raise tax compliance where alterna¬tive enforcement capacity is limited. We study the effects of reporting delinquents and recognizing compliers, and provide evidence on the social determinants of tax compliance. Our results are consistent with a model in which being publicly known as tax-eligible is costly but social sanctions for delinquency are limited. Further, disseminating information on tax behavior reduces the compliance of recipients by causing their beliefs to be updated down toward the true compliance rate. Overall, these policies are limited at raising revenue and less effective than simple enforce¬ment reminder nudges. |
| Keywords: | public disclosure , property tax , shaming , tax morale |
| JEL: | O18 H30 H26 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:csa:wpaper:2023-05&r=iue |
| By: | Anyidoho, Nana Akua; Gallien, Max; Rogan, Mike; van den Boogaard, Vanessa |
| Abstract: | In recent years, more and more governments in lower income countries have been introducing taxes on mobile money transfers as a means to raise revenue. These are often explicitly promoted as a way of taxing informal economic activity, but critics point out their potential negative impact on lower-income groups. Ghana’s electronic transfer levy (E-levy), introduced in May 2022, is a particularly interesting case study. It was explicitly justified as a way of taxing Ghana’s informal economy but includes a 100 cedi ($8.80) per day threshold to limit the tax burden on lower-income groups. Using data from a new survey of 2, 700 self-employed informal workers in the Accra Metropolitan Assembly (AMA) collected in April and May 2022, we examine the likely impact of the E-levy on informal workers from an equity standpoint (with reference to earnings, gender and occupational sector), and explore how this relates to how the levy is perceived. |
| Keywords: | Finance, Work and Labour, |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:idq:ictduk:18114&r=iue |