APL (Ajiken Power Lunch)

APL (Ajiken Power Lunch) is a lunchtime workshop open to public, including IDE staffs, visiting research fellows, IDEAS students, outside researchers and graduate students. This workshop provides a platform for presentation of any work in progress where we can discuss in either English or Japanese.

Those who would attend a seminar are asked to announce yourself to receptionists on your arrival at the IDE and to obtain APL Organizers' signature on your admission card after the seminar.

November 19, 2015. (Thursday) 12：30-14：00

Institute of Developing Economies, Japan External Trade Organization C22 Meeting Room 　

The impact of Semi-Autonomous Revenue Authority Reform on Tax Buoyancy: Empirical Evidence from Malawi's Tax System

The study examined the effects of a popular tax administration reform; establishing a Semi-Autonomous Revenue Authority (SARA), on tax buoyancy estimates of the tax system. The specific objectives were to determine buoyancy of selected individual taxes and the tax system as a whole and gauge the impact of the reformed institution; Malawi Revenue Authority(MRA), on the tax buoyancies. The study employed time series regression analysis using annual data spanning 1970 to 2012. Secondary data was obtained from Malawi Government’s Annual Economic Reports. The study revealed that the reform and subsequent administration had a positive effect on average gross revenue collections for some taxes and tax system. However it also revealed that the reform had a negative impact on buoyancies. This meant that in the period following the reform, though the reformed institution was collecting more in revenue, on average the growth in tax bases the revenue is yielded from exceeded the growth in revenue collections. The study proposes base broadening and compliance enhancing measures, and greater emphasis on improving the Customs Division to leap post-reform buoyancies beyond unity.

Yami Isaac CHILIMA (Yokohama National University)

Toshitaka GOKAN

English