The Effect of Tax Amnesties Programs on Tax Collection and Economic Performance: A Global Macro Economic Analysis
Azeem Mujahid and
Danish Siddiqui ()
Additional contact information
Azeem Mujahid: Research Scholar, Karachi University Business School, University of Karachi, Pakistan.
International Journal of Social and Administrative Sciences, 2019, vol. 4, issue 2, 108-128
Taxes are a major source of government income. Still a major part of economy exists undocumented. Tax amnesty programs are considered a short term tool to overcome tax compliance for long run benefits as well as short term recovery of revenue. This study is examined the effect of tax amnesties programs on tax revenue percentage to GDP and on macro-economic performance with the interaction of tax to GDP. Panel data of 28 years from 1990 to 2017 were collected from 24 countries and run a different test to support our results. These countries data were taken on an annual basis, where single or multiple tax amnesties launched in different years. GDP per capita, FDI per GDP, and the unemployment rate were taken as Macroeconomic variables, and the influence of tax revenue percentage to GDP in presence and absence of tax amnesty on these macroeconomic variables were tested. Results showed that the tax amnesty scheme affect GDP per capita, and FDI but not through an increase in taxes but some other reason. Successful Tax amnesty may benefit reduce the unemployment rate and improve tax to GDP in long-run with increased tax compliance is still workable. We suggest that tax authorities undertake tax reforms from successful experiences of tax amnesties in different countries for economic prosperity and better results.
Keywords: Tax amnesty; Tax compliance; Macroeconomic indicators; Repatriation; Per capita GDP; Tax revenue % of GDP; Tax evasion; Unemployment rate; Foreign direct investment; Tax reforms. (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:asi:ijosaa:2019:p:108-128
Access Statistics for this article
International Journal of Social and Administrative Sciences is currently edited by Editor
More articles in International Journal of Social and Administrative Sciences from Asian Economic and Social Society 2637 E Atlantic Blvd #43110 Pompano Beach, FL 33062, USA.
Bibliographic data for series maintained by Chan Hoi Yan ().