Tax systems and tax reforms in south and East Asia: Overview of the tax systems and main policy tax issues

The paper discusses the main aspects of taxation in South and East Asia. Particolar attention is given to the main issues which emerge from the tax systems of China, India, Japan, Malysia, South Korea and ThailandTax Systems Tax Reforms South East Asia

Tax Systems and Tax Reforms in South and East Asia: Overview of Tax Systems and main policy issues

South and East Asia are a particularly fast developing world economic areas, and are becoming increasingly more economically integrated. These countries, however, are not homogenous, and are lacking in any supra - national Authority. The total fiscal pressure of South and East Asian countries looks somewhat low when compared to that of countries with a similar per-capita income, pertaining to other economic world areas. However, a smooth Wagner law is confirmed by the data so that fiscal pressure is destined somewhat to increase as growth continues. With regards to similar experiences of developing and transition countries, indirect taxes prevail over direct ones. Low tax wedges on labor improve efficiency, by inducing both the supply and demand of labor. The heavy burden on consumption lessens equity and increases welfare losses. Any further uniform analysis of South and East Asian countries’ tax policy issues would be however quite fruitless. It is far better to consider tax policies issues which rise inside the whole area separately to those more specific to each cluster made up by similar countries. Intra-regional economic integration poses severe challenges to the tax structure in the Asian area. Three tax policy issues seem most problematic: the building of intra-countries’ agreements on reducing trade tariffs; the sequential revenue consequences of reduction in foreign trade taxes; the increasing tax competition for FDI. Intra-countries clusters’ tax policy issues differ from each other. In Japan and in S. Korea different choices have been made regarding the comprehensiveness of the PIT’s basis, whose burden as a consequence ends up being more fairly distributed in S. Korea. The two countries are facing the common problem of an ageing population and consequentially, social contributions, and eventually VAT are being raised. Malaysia’s direct taxes look higher than Thailand’s, but this is only because of the taxation of oil companies. Thailand has adopted VAT, while Malaysia has not changed its traditional sales tax. Both the countries are engaged in the recovery of revenue by improving tax administration. Both in China and in India income tax is small and poorly redistributing. Also, India has just moved from a schedular to a comprehensive tax basis. VAT is well established in China, while it is just arriving in India, as a consequence of a long waited but challenging reform, especially regarding the tax relationships among levels of government. Taxing power is now more centralized in China, but this needs to be corrected in order to avoid a lack of accountability on the part of the provinces.Tax Systems; Tax Reforms; South and East Asia

The fiscal and equity impact of tax expenditures in the European Union

Tax expenditures are preferential tax treatments granted to specific individuals or categories of households which aim at achieving social and economic goals \u2013 poverty and inequality reduction, and employment promotion, among others. Tax expenditures are widely used by EU Member States. However, their fiscal and equity impacts are not always clear and their effectiveness and efficiency as a policy instrument needs to be carefully evaluated, especially in the present context of constrained public finances. Tax expenditures might in some cases distort economic incentives be it towards consumption or investment, in some case by favouring rent seeking behaviour and making tax systems less transparent and/or regressive from a social viewpoint. While policy recommendations often call for streamlining tax expenditures, in practice policy measures are often difficult to design in particular given the difficulty in measuring the fiscal and equity impact of tax expenditures. This paper quantifies the fiscal and equity effects of tax expenditures in 27 European countries making use of EUROMOD, the EU-wide microsimulation model. We focus on four specific categories of preferential tax treatments affecting personal income taxation related to housing, pension, education and health expenditures. One key feature of the microsimulation model EUROMOD is that it embeds the interaction between different tax instruments and benefits entitlement which, in EU tax systems, proves essentially to fully gauge the fiscal and equity impact of tax expenditures. In order to quantify the impact of tax expenditure on governments' tax revenues and on households' disposable income a benchmark tax system scenario is created where tax expenditures \u2013 in the form of allowances, deductions, exemptions, reliefs and credits \u2013 are explicitly considered. We find a variety of effects, in terms of sign and magnitude, across Member States, and within these, among types of households and across generations. Overall our findings suggest that the impact of tax expenditure on tax revenues and on income inequalities can be sizeable. The redistributive impact of removing tax expenditures can go both directions, either on the progressive or regressive side, depending on the country and the tax expenditure considered. This result points out to the importance of a careful country specific scrutiny, for each type of tax expenditures

Analysis of scientific collaboration network of Italian Institute of Technology

AbstractIt has been proven that collaboration between authors leads to a positive influence on research. This paper aims to analyse the complex structure of the co-authorship network among researchers of the Italian Institute of Technology. In this paper, we examine two different co-authorship networks created starting from the data of the papers published by the Italian Institute of Technology during the period 2006–2019. We apply the main Social Network Analysis techniques to describe the relational structure of the group of researchers and its evolution over time. The structure and characteristics of the networks are analysed both at macro and micro levels, and an attempt is made to identify a possible relationship between the position of researchers in the graphs and their scientific productivity and quality

Short and long run income elasticity of gambling tax bases: evidence from Italy

In periods of economic recession and budget constraints, it becomes essential for the governments to understand which tax revenues are more likely to guarantee a stable or increasing amount of revenues able to support the provision of main public services without depending too much on variation in Gross Domestic Product (GDP). The aim of this paper is to analyze a particular source of tax revenues in Italy, namely gambling tax revenue split by game type (i.e. Lotto; Lotteries; Entertainment machines), in order to understand how tax bases react to changes in income, providing a measure of short run (variability over the business cycle) and long run (growth) income elasticity of different gambling tax revenues. Results show that gambling activities tend to be impressively reactive to variation in income in the long run, and, on the contrary, not particularly volatile in the short run

Tax systems and tax reforms in south and East Asia: Overview of the tax systems and main policy tax issues

The paper discusses the main aspects of taxation in South and East Asia. Particolar attention is given to the main issues which emerge from the tax systems of China, India, Japan, Malysia, South Korea and Thailan

Ranking and Prioritization of Emergency Departments Based on Multi-indicator Systems

In this work we discuss how Emergency Departments (EDs) can be ranked on the basis of multiple indicators. This problem is of absolute relevance due to the increasing importance of EDs in regional healthcare systems and it is also complex as the number of indicators that have been proposed in the literature to measure ED performance is very high. Current literature faces this problem using synthetic (or numerically aggregated) indicators of a set of performance measures but, although simple, this solution has a number of drawbacks that make this choice inefficient: a compensation effect among the indicators; a high degree of subjectivism in the indicators weighting; opacity in the decision making; all the EDs are considered to be comparable. Indeed, the situations in which EDs are comparable (i.e. when all the performance of one ED are not lower than the performance indicators of the other) are a minority and incomparability is by itself a source of information that should be used to identify situations for which different policy actions should be designed. In this work we propose to use non compensatory composite indicators and partial ordering theory to rank and compare EDs giving value to the reasons of such an incomparability. These methods are applied on a case study of 19 EDs in an administrative region in Italy. \ua9 2016, Springer Science+Business Media Dordrecht

Tax Systems and Tax Reforms in South and East Asia: Overview of Tax Systems and main policy issues

South and East Asia are a particularly fast developing world economic areas, and are becoming increasingly more economically integrated. These countries, however, are not homogenous, and are lacking in any supra - national Authority. The total fiscal pressure of South and East Asian countries looks somewhat low when compared to that of countries with a similar per-capita income, pertaining to other economic world areas. However, a smooth Wagner law is confirmed by the data so that fiscal pressure is destined somewhat to increase as growth continues. With regards to similar experiences of developing and transition countries, indirect taxes prevail over direct ones. Low tax wedges on labor improve efficiency, by inducing both the supply and demand of labor. The heavy burden on consumption lessens equity and increases welfare losses. Any further uniform analysis of South and East Asian countries’ tax policy issues would be however quite fruitless. It is far better to consider tax policies issues which rise inside the whole area separately to those more specific to each cluster made up by similar countries. Intra-regional economic integration poses severe challenges to the tax structure in the Asian area. Three tax policy issues seem most problematic: the building of intra-countries’ agreements on reducing trade tariffs; the sequential revenue consequences of reduction in foreign trade taxes; the increasing tax competition for FDI. Intra-countries clusters’ tax policy issues differ from each other. In Japan and in S. Korea different choices have been made regarding the comprehensiveness of the PIT’s basis, whose burden as a consequence ends up being more fairly distributed in S. Korea. The two countries are facing the common problem of an ageing population and consequentially, social contributions, and eventually VAT are being raised. Malaysia’s direct taxes look higher than Thailand’s, but this is only because of the taxation of oil companies. Thailand has adopted VAT, while Malaysia has not changed its traditional sales tax. Both the countries are engaged in the recovery of revenue by improving tax administration. Both in China and in India income tax is small and poorly redistributing. Also, India has just moved from a schedular to a comprehensive tax basis. VAT is well established in China, while it is just arriving in India, as a consequence of a long waited but challenging reform, especially regarding the tax relationships among levels of government. Taxing power is now more centralized in China, but this needs to be corrected in order to avoid a lack of accountability on the part of the provinces