1.
GAC 743 – TOPIC 1
TAX REVENUES AND TAX

2.
OBJECTIVES
1. Provide an overview of the aggregate tax collections of
different countries
2. Discussion of comparable tax data and its analysis

3.
KEY OUTLINE
1. Tax revenue collection
2. Tax structure
3. VAT and GST systems

4.
TAX – Compulsory, unrequited payments to government
(SSC included)
GDP – Total value of all finished goods and services
produced within a country’s border for a specific time frame
TAX RATIO
= TAX / GDP
1. TAX REVENUE COLLECTION

5.
TAX STRUCTURE – mix of taxes (%) that govts rely on for
overall revenue purposes
• Tax Policy
• SSC Policy
• Scope of taxing power
• Access to natural and other resources
2. TAX STRUCTURE

6.
VAT or Ad-Valorem Tax
• Indirect tax
• Levied on goods/services
• Added at each level of value chain
• Ranges from 0% (Cayman Islands) - 50% (Bhutan)
• Imposition of reduced VAT rates
• VAT refunds
3. VAT/GST SYSTEMS

7.
VAT performance ratios
• Vat productivity ratio – VAT rate / tax-to-gdp ratio
• VAT revenue ratio – Actual VAT / Should be VAT
3. VAT/GST SYSTEMS