Differentiated Excise Taxation in the Beer Market

Han, Seungjin; Lesica, Josip

doi:10.2139/ssrn.3973245

Cited by 2 publications

(2 citation statements)

References 10 publications

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“…To minimise the country's deficit, prevent the maladministration of state funds, and strengthen the country's economy, the government chooses the sustainable tax method to generate revenue. For example, the United States (US) government believes that the regressiveness of VAT if measured relative to the current income increases the burden on lower-income earners and raises the welfare imbalance between rich and poor societies (Caspersen & Metcalf, 1993;Han & Lesica, 2021).…”

Section: Stakeholders' Response To the Vat Changementioning

confidence: 99%

“…To promote savings and prevent and cut the compliance cost that goes with VAT administration, the US government rejected VAT and continued to charge Retail Sales Tax (RST), as it is simpler to maintain and administer (Holcombe, 1990;US Congressional Budget Office, 1992;US Congressional Budget Office, 1993;Han & Lesica, 2021). Holcombe (2010) did some further investigation and in his findings, he argues that introducing VAT in the US slows the GDP growth, as VAT is the same as RST.…”

Section: Stakeholders' Response To the Vat Changementioning

confidence: 99%

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Value-Added Tax Change Implementation Aftermath: A Case of MTN

Nene

2023

OJBM

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The main objective of this article is to explore and describe the impact of the Value-added tax (VAT) increase on Mobile Telephone Networks (MTN) performance by exploring the end-to-end telecommunication (telco) business process. For the nature of this research, there is limited research in both South African and international scholarship that seeks to explore an understanding of the full end-to-end telco industry where study would look at the complexity of telco strategies right from the product catalogue down to rate cards, price configuration, system capacity, network depletion rules, billing engines, and customer invoices. Failure to apply the correct VAT change to any of these elements will result in either over-or underbilling of customers. This is a serious problem because an undercharge influences the operator's revenue, causing a loss, not just because of the 1% VAT increase. Damages can reach far beyond this: an overcharge may increase customer complaints and result in reputational risk that is not limited to customer churn. This article provides insight into how fiscal policy affects industries. The insights and practical experience gathered in the research field can be used for operational improvement, training, risk identification and control development in the telco industry. A mixed-method design was used with a case study approach. This article reports on the qualitative findings. Five main themes were identified after analysing the qualitative data, namely: the effect of the VAT increase on MTN's performance, change management, change in business processes, the impact of an incorrect VAT rate on MTN's system, and system or process configuration. The case studied and the primary data analysed to explore the impact of a VAT increase aftermath are limited to the South African telco industry. The change management risk exposure detected, root cause analysis and insights of this article highlight the pitfalls that the project managers, change management professionals, marketing, information system and technology teams need to avoid when performing net-

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Section: Stakeholders' Response To the Vat Changementioning

confidence: 99%

Section: Stakeholders' Response To the Vat Changementioning

confidence: 99%

Value-Added Tax Change Implementation Aftermath: A Case of MTN

Nene

2023

OJBM

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The strategic impact of tax regulation on the performance of a telecommunication company

Nene,

Moraka

2023

CBSR

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Abrupt regulatory and statutory requirements add to the complexity of sustainable businesses and may impact their strategies and their performance. This research aims to investigate such regulatory impacts, for example, the full end-to-end telecommunications (telco) industry is complex and requires focused strategies right from the product catalogue down to rate cards, price configuration, system capacity, network depletion rules, billing engines, and customer invoices. Failure to apply the correct value-added tax (VAT) change in these elements can result in over or underbilling of customers. An undercharge influences the operator’s revenue, causing a loss, not just because of the 1 percent VAT increase. Consequential damage points to that an overcharge may increase customer complaints and result in reputational risk that is not limited to customer churn. A mixed-method design was applied where interviews provided qualitative results and financial statements of mobile telephone networks (MTN) were used for quantitative analysis. Results showed that the VAT change increased the liability transactions from the balance sheet of the year 2018 compared to 2017 (Nene, 2019). This research recommends efficiency in project management that involves the review of old legacy systems, conducting impact analysis and contentiously updating the enterprise architecture framework.

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Differentiated Excise Taxation in the Beer Market

Cited by 2 publications

References 10 publications

Value-Added Tax Change Implementation Aftermath: A Case of MTN

Value-Added Tax Change Implementation Aftermath: A Case of MTN

The strategic impact of tax regulation on the performance of a telecommunication company

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