Search Results

You are looking at 1 - 10 of 15 items for :

  • "PIT tax credit" x
Clear All
Mr. Ricardo Fenochietto
This paper analyses and compares two different groups of tools, the first to encourage the use of invoices (or payment systems) and the second to refund the VAT to low-income individuals. The analysis contributes to the existing literature by providing a clear characterization between these two groups of tools that are too often misunderstood and offers clear guidance to policymakers on the benefits and pitfalls of them based on available empirical studies and novel data analysis. Briefly, the first group includes a set of regressive and distortive tools (such as, allowing deducting the VAT paid on personal consumption from the PIT and reducing the VAT rate for using electronic means of payments or registration), while the second group includes tools that are less distortionary and improve income distribution (tax credits and VAT rate reduction targeted only at low-income individuals). This paper also finds that allowing the deduction of personal consumption against the PIT’s taxable base (i) did not impact positively the VAT revenue in Guatemala and (ii) worsens the income distribution in Ecuador.
Mr. Ricardo Fenochietto

This paper analyses and compares two different groups of tools, the first to encourage the use of invoices (or payment systems) and the second to refund the VAT to low-income individuals. The analysis contributes to the existing literature by providing a clear characterization between these two groups of tools that are too often misunderstood and offers clear guidance to policymakers on the benefits and pitfalls of them based on available empirical studies and novel data analysis. Briefly, the first group includes a set of regressive and distortive tools (such as, allowing deducting the VAT paid on personal consumption from the PIT and reducing the VAT rate for using electronic means of payments or registration), while the second group includes tools that are less distortionary and improve income distribution (tax credits and VAT rate reduction targeted only at low-income individuals). This paper also finds that allowing the deduction of personal consumption against the PIT’s taxable base (i) did not impact positively the VAT revenue in Guatemala and (ii) worsens the income distribution in Ecuador.

International Monetary Fund

legal retirement age will be phased in at a faster pace than under similar reforms in other countries. Fostering low-skilled workers’participation is also necessary and a consistent effort has been made over the last years to eliminate inactivity traps with the creation of the PIT tax credit (Prime pour l’emploi) and the recent introduction of the Working Solidarity Benefit (RSA). Finally, my authorities are in full agreement with staff that further enhancing domestic competition would strengthen economic efficiency . They recognize that there is scope to build on

International Monetary Fund. European Dept.

by family members (spouses and children living with parents). Data on exemptions and property thresholds for other countries are not readily available. Table 6. Tax Exemptions in Europe, 2015 (Percent of per capita GDP, unless otherwise indicated) Lithuania Estonia Latvia Germany Sweden United Kingdom CE-5 EU-28 EA PIT personal allowance 19.2 16.5 9.3 .. 4.2 42.0 29.5 .. .. PIT tax credit .. .. .. .. .. .. 5.1 .. .. Social security contributions-upper threshold for

International Monetary Fund. Middle East and Central Asia Dept.

exemptions and preferential rates, except for basic food and medicines, a measure that will significantly improve revenues. Greater inter-provincial harmonization and coordination of GST will also simplify filing procedures and increase compliance. Overtime, the authorities are committed to taking steps to transform the GST into a broad-based VAT and making the PIT fairer and more progressive by raising the upper-end of the PIT structure and consider eliminating PIT tax credits and deductions for the higher income brackets. In addition, other tax policy measures include

International Monetary Fund. European Dept.
This Selected Issues paper examines the reasons behind Lithuania’s low tax-GDP ratio relative to the European Union (EU). At end-2015, Lithuania had nearly the lowest tax-GDP ratio in the EU, along with Bulgaria and Romania. The tax revenue shortfall relative to the EU is for the most part attributable to weak tax administration and tax policy, with the structure of the economy playing a secondary role. The second largest contribution to the tax revenue shortfall relative to the EU comes from social security contributions. The shortfall is driven primarily by the structure of the economy, and to a smaller extent by tax administration.
International Monetary Fund
The French economy weathered global crisis better than most of its peers. The authorities have taken important policy actions to stabilize the financial system and have implemented suitable fiscal stimulus to cushion the downturn. Executive Directors welcomed the policy, which aims to strengthen the economy through fiscal consolidation, recovery of financial system, improving financial regulation, and also implementing structural reforms to raise potential growth, create jobs, and strengthen competitiveness. They stressed the importance of a multiyear budget framework to enhance the credibility of the consolidation effort.
International Monetary Fund. Middle East and Central Asia Dept.
Pakistan’s economy is at a critical juncture. Misaligned economic policies, including large fiscal deficits, loose monetary policy, and defense of an overvalued exchange rate, fueled consumption and short-term growth in recent years, but steadily eroded macroeconomic buffers, increased external and public debt, and depleted international reserves. Structural weaknesses remained largely unaddressed, including a chronically weak tax administration, a difficult business environment, inefficient and loss making SOEs, and low labor productivity amid a large informal economy. Without urgent policy action, economic and financial stability could be at risk, and growth prospects will be insufficient to meet the needs of a rapidly growing population.
International Monetary Fund

, excluding PIT tax credits in 2008 is 0.07 percent, up from 0.06 percent in 2006. Appendix IV. Armenia: Business Climate and Competitiveness According to reports of the World Economic Forum, Armenia ranks well below most CIS and Eastern European countries on indicators of competitiveness . Armenia was ranked 98 out of 139 countries in 2010, outperforming only Tajikistan and the Kyrgyz Republic. Key constraints in doing business in 2010 were the lack of local competition, the extent of market dominance, and the ineffectiveness of anti-monopoly policy. On these