rebates. Recent experience from the United States offers lessons in implementing such measures. In 2008, the United States enacted the Economic Stimulus Act (ESA), which provided tax rebates to low- and middle-income households. ESA mandated that the Internal Revenue Service (IRS) begin issuing more than 100 million stimulus payments within about 12 weeks of its enactment on February 13, 2008.
22. The IRS is considered to have successfully implemented the 2008 tax rebateprogram, though at some cost to other activities . 15 As of September 2008, it had issued more
The global financial and economic crisis presents major challenges for tax agencies. With the economic downturn, tax agencies are encountering emerging compliance problems and greater demands for taxpayer support in the face of prospective budget cuts. To help address these challenges, this paper encourages tax agencies to develop a tax compliance strategy for the crisis by (1) expanding assistance to taxpayers, (2) refocusing enforcement on emerging compliance risks, (3) enacting legislative reforms that facilitate tax administration, and (4) improving communication programs. In each of these areas, the paper identifies specific measures to underpin the strategy, drawing on practices from leading tax agencies and experiences from IMF technical assistance. The paper also highlights emerging tax compliance issues in the financial sector.
International Monetary Fund. Asia and Pacific Dept
mortgage loans to households. With favorable price developments in the condo market, the value of home equity has been rising. A number of commercial banks have also been offering home equity loans to help pay off higher interest debts, finance home renovation, and start a business. In addition, consumer loans have become widely accessible over the past years. Following the 2011 floods, the authorities introduced a tax rebateprogram for first-time buyers of automobiles to support the country’s auto industry. 5 Cooperatives continued to expand consumer loans, following
on low-income consumers, in which case the savings would depend on the scope of the government’s rebateprogram.
F. Final Considerations
18. The findings of this chapter suggest potentially large long-term benefits from reforming energy subsidies . Nevertheless, it is important to take into account short-term considerations. In particular, as the empirical literature mentioned in Table III.1 indicates, the short-term price elasticity is likely to be lower than the long-term elasticity, which suggests that the loss of consumer welfare in the short term is
tax credits for businesses making split supplies (taxable and exempt supplies). In such cases, this model treatment would approximate the statutory requirement.
15 The national accounts are compiled based on residency, and transactions between residents and non-residents are recorded as imports and exports, regardless of whether such transactions cross national borders or not.
16 For jurisdictions that have rebateprograms for VAT expenses incurred by non-residents, the estimate for potential VAT should be adjusted by the known expenditures for the
Mr. Joshua Charap, Mr. Arthur Ribeiro da Silva, and Mr. Pedro C Rodriguez
of the government’s rebateprogram.
The analysis presented above, and the elasticities estimated in the previous section, suggest that some countries could achieve significant gains from subsidy reform in the long term. Nevertheless, it is also essential to consider the implications of subsidy reform in the short term. As the empirical literature cited in Section 2 suggests, the short-term price elasticity of energy demand is likely to be much lower than the long-term elasticity, which would imply that the loss of consumer welfare in the short term is higher
resulted in significant increases in LPG consumption.
Tax exemption for public transportation . According to the New Turkish Corporate Tax Law passed in 2006, public transport companies owned and managed by municipalities, villages, or special provincial administrations are exempt from VAT and excise tax.
Rebate for diesel used in agriculture . In Turkey, the tax rate on diesel fuel is very high, thereby affecting the real income of farmers. A rebateprogram was introduced by the Ministry of Agriculture in 2007 to help farmers grow specific crops. There are three