Tax Policy in Limiting the Consumption of Luxury Goods

Yossinomita, Yossinomita

doi:10.55365/1923.x2022.20.19

Cited by 4 publications

(4 citation statements)

References 35 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Luxury goods are typically defined as products or services that are not necessary for basic living standards and are considered high-end or luxurious (Yossinomita, 2022). The definition of luxury goods can vary depending on cultural and economic contexts, but they generally include items such as high-end automobiles, jewelry, watches, designer clothing, high-end electronics, and gourmet food and beverages.…”

Section: Research Aim Methodology and Limitationsmentioning

confidence: 99%

Luxury tax perspectives: The evidence of the Republic of Belarus

Karaleu,

Tishkovskaya

2023

Vestn. Ross. univ. družby nar., Ser. Èkon.

View full text Add to dashboard Cite

The study is dedicated to the reasons for luxury tax implementation into the national taxation system. The purpose of the research is to study the emergence and experience of applying the luxury tax in various countries in order to determine the feasibility of introducing such a tax in the Republic of Belarus. Authors’ conclusions and findings have been presented against the background of the analysis of digitized texts on tax and bibliometric and scientometric analysis of the scientific field of taxation. As a testing ground for making our conclusions in terms of lessons learned from past historical experience and real economic background, the Republic of Belarus was chosen. Possible reasons for the introduction of such a tax were considered, as well as an analysis of the market for luxury goods in the Republic of Belarus and the demand for them was conducted. We have drawn some parallels between the Republic of Belarus and the Russian Federation to reach a reasonable conclusion. For this purpose, the Russian luxury goods market (premium car and real estate markets) was analyzed based on available statistics for the years 2020-2022. As the most politically controversial tax that can be not as efficient as income taxes and have unintended consequences, luxury tax was examined from the point of international experience and historical perspective. Examples of luxury goods throughout history and in real life together with historical references to the implementation of this tax were presented. The effectiveness of luxury tax and its impact that depends on a variety of factors (tax rate, types of goods and services being taxed, economic conditions, etc.) together with the modern concept of luxury tax with national specific was evaluated. Considering the situation in the Republic of Belarus, although during recent years there has been a budget deficit and there is a necessity to find new sources of state income, we didn’t find any reasons for the implementation of such a tax into the national taxation system. These types of taxes are mainly imposed in highly developed countries where people can afford “luxurious” goods and the variety of these goods is higher. In the case of the Republic of Belarus, there is a trend of decreasing the number of people whose purchasing power would allow them to buy luxury goods and the real disposable income of Belarusians has also declined, making it less likely that Belarusians will spend money on the consumption of luxury goods.

show abstract

Section: Research Aim Methodology and Limitationsmentioning

confidence: 99%

Luxury tax perspectives: The evidence of the Republic of Belarus

Karaleu,

Tishkovskaya

2023

Vestn. Ross. univ. družby nar., Ser. Èkon.

View full text Add to dashboard Cite

show abstract

“…An effective tax system as a source of domestic income will be able to move the wheels of development to free nations from dependence on foreign aid and natural resources (Fjeldstad, 2014). People's welfare can be realized if the government is able to collect taxes from citizens and use them to develop the state (Yossinomita, 2022). Tax revenue is a crucial aspect of the country's development, and this is because tax revenue is the primary source of income for the state, more than 80% of state revenue comes from tax revenue.…”

Section: Introductionmentioning

confidence: 99%

Determining the Future Direction and Amount of Tax Revenue in Indonesia Using an <i>Error Correction Model </i>(ECM)

Yossinomita,

Haryadi,

Hodijah

2024

ECO

Self Cite

View full text Add to dashboard Cite

The characteristics of how tax revenues, as well as the macroeconomic factors that are expected to influence and determine tax revenues, develop have become the basic macroeconomic assumptions by the government in compiling various components of the posture of the state revenue and expenditure budget to maintain and increase the expected economic growth. To understand the evolution of tax revenues and the impacts of these variables, it is important to investigate the relationship between tax revenues and specific macroeconomic variables. This study aims to identify the effect of macroeconomic variables on Indonesian tax revenues in the long and short term using multiple regression analysis in an error correction model (ECM). The macroeconomic conditions and variables used in this study are gross domestic product (GDP), inflation, interest rates, and exchange rates. This study employed the time-series data from 2000–2019. The ECM method was conducted in the following stages: stationarity test, cointegration test, and ECM regression test. The ECM model is declared valid, if the cointegrated variables are supported by a significant and negative ECT coefficient value. The statistical analysis, i.e. t-statistic, the F-statistic, and the coefficient of determination, were used to evaluate the significance of the ECM model. The results showed that among the four of macroeconomic variables used in this study, GDP has the highest significant effect on the tax revenue. GDP has a highly positive and considerable impact on tax revenue. The increasing of GDP growth is in line with the realization of tax revenue. A strong positive long-term (t-statistic = 13.94075*, P-value = 0.0000) and short-term (t-statistic = 5.515026*, P-value = 0.0001) association is also observed between inflation and tax revenue. Inflation has a favorable and considerable impact on tax income either in long (t-statistic = 2.298586**, P-value= 0.0363) or short term (t-statistic = 2.515695**, P-value = 0.0258). On the other hand, Bank Indonesia interest rate has a negative insignificant effect (t-statistic = −1.542970ᵈ, P-value = 0.1437) in the long run on tax revenue. However, it has a negative significant effect (t-statistic = −2.699231**, P-value = 0.0182) in short-term tax revenue. A rise in interest rates results in the lowered tax revenues due to the reduction of public consumption patterns, and a decrease in public consumption. The exchange rate has a negative negligible connection in long term (t-statistic = −1.045768ᵈ, P-value = 0.3122), as well as in short term (t-statistic = 1.250076ᵈ, P-value = 0.2333) with tax revenue, meaning that tax revenue is not significantly affected by changes in exchange rate. In conclusion, total tax revenues and the four macroeconomic variables have a significant long- and short-term association according to the ECM analysis with an adjusted R² value of 0.985866 and 0.792880, respectively. Changes in future tax revenues are largely determined by the stability of macroeconomic variables. Therefore, it is highly recommended that the government maintain the stability of macroeconomic variables, especially GDP, because GDP has a dominant influence on tax revenues in the long and short term so that the target of tax revenues can be achieved. The ECM analysis applied in this study can explain the effect of changes in macroeconomic variables on the tax revenue in the short and long term; so that the future direction and amount of tax revenue can be determined in preparing the State Budget and projecting the expected level of economic activity growth in a nation.

show abstract

“…Taxation is a government instrument that has the power to influence and regulate the economic system of a country (Yossinomita, 2022) because tax revenue is the largest source of income for a country (Milasi & Waldmann, 2018). There is a certain ratio of tax revenue to GDP that can produce optimal economic growth.…”

Section: Introductionmentioning

confidence: 99%

Maximizing Economic Growth in Indonesia: A Model-Based Exploration of Optimal Tax Ratios

2024

Journal ITRev

View full text Add to dashboard Cite

Tax Policy in Limiting the Consumption of Luxury Goods

Cited by 4 publications

References 35 publications

Luxury tax perspectives: The evidence of the Republic of Belarus

Luxury tax perspectives: The evidence of the Republic of Belarus

Determining the Future Direction and Amount of Tax Revenue in Indonesia Using an <i>Error Correction Model </i>(ECM)

Maximizing Economic Growth in Indonesia: A Model-Based Exploration of Optimal Tax Ratios

Contact Info

Product

Resources

About