Pesticide tax – the new challenge in Europe's green tax policy

The Covid 19 pandemic profoundly affected society's social and economic life. At the same time, it accelerated another long-delayed process. This is the need to modernise taxation. The European tax legislation in income taxation has stayed the same for a long time. To some extent, it is outdated. It does not correspond to the modern societal changes and the realisation of new types of income not covered by the law. Many European countries rely heavily on their income taxes on the budget's revenue side. The forecasts point to fewer and fewer opportunities to generate income due to the ageing working-age population. All these arguments determine the need for modernisation and gradual replacement of income taxes. The present study defends the thesis that a promising opportunity to compensate for the reduced revenues from income taxation is related to strengthening the environmental function of taxes. The possibility of limiting environmentally harmful substances such as pesticides through taxes has been analysed. This change the authors propose to achieve this in two ways. The first one requires eliminating dif-ferentiated reduced VAT rates for pesticides, plant protection materials and fertilisers unless the latter are organic. The second one proposes the possibility of introducing a tax on pesticides. Such a tax could limit their use as well as generate new revenue. In this regard, the experience of the few countries applying a pesticide tax is analysed. The various options for determining the tax base as a critical point in defining the tax are argued. © 2023, Agricultural Academy, Bulgaria. All rights reserved.

Fiscal policies in the Federation of Bosnia and Herzegovina: are spending or revenue measures more effective?

We examine the effectiveness of different fiscal policies in the Federation of Bosnia and Herzegovina (FBiH). For this purpose, we use a structural macroeconomic model for the FBiH. In this model, GDP in the Federation is influenced by world demand and by domestic demand in the Federation. Domestic demand comprises consumption of private households, public consumption, and gross fixed capital formation. Employment depends positively on GDP and negatively on the tax wedge, i.e., the net wage plus social security contribution rates (including the unemployment insurance), and the personal income tax rate in the Federation. The latter allows the analysis of the impact of changes in social security contribution rates or in the income tax rate in the Federation of Bosnia and Herzegovina. The following Federation-specific policy instruments are implemented in the model for the FBiH: Pension funds contribution rate in FBiH; contribution rate for health insurance in FBiH; contribution rate for the unemployment insurance in FBiH; benefits from social security; direct tax rates (income tax rate, corporate tax rate); public consumption in FBiH. Our results show that policy measures that reduce the tax wedge on labour income are highly effective in stimulating employment. Due to the large elasticity of imports with respect to demand, pure demand-side measures have little impact on real variables, indicating that a small open economy like the Federation of Bosnia and Herzegovina has only little scope for influencing macroeconomic developments with pure demand management policies. Our results confirm earlier theoretical and empirical studies showing that the labour market can best be influenced positively by reducing the tax wedge. The multipliers of income tax reductions are larger and oscillate more than the effects of the other fiscal policy measures.

Pandemic Times: Elites and Influence in Central America

Elites are vital actors in understanding state strengths and weaknesses during critical times. To what extent do Central American elites constrain tax policies implemented during COVID-19? Using novel data sets of cabinet trajectories and tax policies imple-mented in Central America, this article offers an in-depth empirical comparative analysis of the elites' trajectories and resources, state capacities, and policy implementation. Our findings show first, that when state capacities are weak, and elites' capacities for influence are strong, the policy response is regressive. Second, when there are weak state capacities and inter-elite conflicts, the policy responses are used as a control mechanism. And third, where state capacities are strong, but elites are cohesive, policy responses tend to favor the fiscal status quo. This article contributes to increasing our understanding of the rela-tionship between elite power and public policies by making an empirical and conceptual contribution to studying elites.

Synergistic Effects of International Oil Price Fluctuations and Carbon Tax Policies on the Energy-Economy-Environment System in China.

Catalyzed by COVID-19 and the Russia-Ukraine conflict, oil prices fluctuate dramatically on the worldwide market. Both international oil price changes and carbon tax policies have a direct impact on energy costs, thus influencing energy security and emission reduction impacts. Therefore, assessing the interaction effects of international oil price variations and carbon tax policies can assist in resolving the competing challenges of energy security and carbon emission reduction. The impact of international oil price fluctuations on China's energy-economic-environment system under the baseline scenario and carbon taxation scenario is analyzed by constructing a computable general equilibrium model comprising six modules: production, trade, institutions, price, environment, and equilibrium. The findings indicate that, in addition to reducing high-carbon energy consumption and increasing demand for clean electricity, rising international oil prices have a negative effect on real GDP, resulting in lower output in sectors other than construction, and a positive effect on the environmental system by driving carbon emission reductions. In contrast, decreasing international oil prices have the opposite effect. Nevertheless, the impact of rising and decreasing international oil prices is asymmetrical, with the positive shock effect being smaller than the negative. The carbon tax policy can effectively offset the increase in carbon emissions caused by the decline in international oil prices, which is conducive to promoting the development of clean energy, while simultaneously causing an increase in product prices and arousing a contraction in consumer demand, which has a limited negative impact on the macroeconomy.

ECONOMIC IMPACT OF THE 2% TAX LOAD ON GROSS INCOME IN MI-CROENTERPRISES IN SANTO DOMINGO DE LOS TSÁCHILAS

The purpose of this research is to analyze the economic incidence of the 2% tax burden on the gross income of microenter-prises in Santo Domingo de los Tsáchilas. For this purpose, the study was developed with a mixed methodological design (qualitative-quantitative) with a descriptive-correlational depth. Likewise, a documentary research was applied through a bibliographic review of statistics and information published by official agencies in the country. The results show an average increase of 58% in taxes paid in 2019. This will cause a decrease in net profit and greater losses for Santo Domingo’s micro-enterprises. In addition, the global health crisis caused by COVID-19, where most of the local micro-enterprises have not yet fully recovered. Consequently, it is suggested that this study be considered as a valid instrument for the management of public policies by local and national authorities, always considering the well-being of the different sectors of the economy. © 2022, University of Cienfuegos, Carlos Rafael Rodriguez. All rights reserved.

Tax Burden on Companies in Selected Countries

Taxes are one of the things all companies have to pay. However, taxation is a big issue for many people in today's uncertain times. The paper aims to compare taxes in Central European countries (the Czech Republic, Slovakia, Poland, Hungary, Austria, and Germany) in the years 2016-2020 and to make predictions for next years. The data used were obtained from publicly available resources - Eurostat and OECD. The situation in the individual states is compared using time series analysis, i.e. by observing the data. Based on the observation, the results are obtained using Excel. The results show that Central European countries are doing better when compared to the other EU countries in terms of taxation (i.e. lower taxes). The results also show the existence of differences between the states of the former Eastern and Western blocs in terms of taxation. According to the estimates of the taxation for the next years, taxation in Central Europe will increase slightly or remain the same in the coming years. The paper also proposes further research including a larger number of countries.

Government Tax Policy in the Digital Economy

The article considers the peculiarities of the formation and implementation of tax policy in the development of the digital economy, reveals current problems, and substantiates the need to change the tax system. The directions of compensation of the reduction of income from the labor tax through automation and introduction of artificial intelligence in technological processes are defined and the forms of taxation of digital commerce are offered. The research methods were scientific ion, logic, graphics, visual reflection, analytics. It has been proven that the process of digitalization of the economy in combination with the crisis caused by COVID-19 causes many risks that must be considered when developing tax policy. Emphasis is placed on the implementation of a tax policy based on digital transformation, which stimulates innovation, ensures efficiency, and improves the quality of tax services. Increasing the use of digital technologies has been shown to create challenges in many areas of public administration, including taxation. It concludes that there is a need for broad international cooperation to prevent tax evasion, ensure tax transparency and develop new tax approaches and software.

Vat Revenues In 2008–2020: Trends And Challenges Of Covid-19

Motivation: VAT revenues are particularly vulnerable to economic turbulence, especially if the crisis directly affects private consumption or changes its structure. Even when consumption levels are relatively high, VAT revenues may be lower due to a shift in consumer spending to the most essential goods or services or an increase in public sector consumption. Because of the reduction in operation and the closure of many businesses, the Covid-19 crisis is likely to have an even greater impact on consumption than the previous financial crisis of 2008. Aim: The purpose of this article is to analyse VAT revenues in OECD countries over the period 2008–2020, identify general trends, and highlight similarities and differences in this regard between the 2008 financial crisis and the Covid-19 crisis. Results: Consumption taxes account for about 33% of all taxes collected in OECD countries, of which 20% is VAT. Covid-19 could change that in an important manner. After the 2008 global financial crisis, tax revenues, including VAT, returned to pre-crisis levels after an average of eight years. VAT revenues in relation to GDP peaked in 2016, and have been stable since then. Due to reduced operation and closure of businesses, the Covid-19 epidemic not only changed the structure of private consumption, but also significantly affected its level. In addition, government actions reducing certain rates have contributed to the decline in VAT revenues. As the survey results indicate, standard VAT rates between 2017 and 2020 were at record high levels, averaging 19.3%. With such high rates, in order to re-store VAT revenues after the crisis, governments may have to think about how to broaden the tax base (e.g., temporarily lower rates and stimulate consumption).

The Unaccountability of Tax Devolution: A Case Study of Business Rates

This article examines the accountability arguments for business rates devolution and shows them to be weak. They are undermined by the economic incoherence of the tax, the complexity of devolved powers and a lack of transparency around the use of powers. These problems resonate with a widely held belief that business rates ought to be repealed and replaced with a more carefully designed tax, especially in response to the pressures placed on the system by COVID-19. We are not hostile to these ideas but doubt the likelihood of rapid implementation, and therefore focus on the existing system, paying special regard to the COVID reliefs of 2020 and 2021. We suggest incremental improvements that could reinforce the accountability justifications for devolution;these might be useful even in the event that radical reforms are enacted. © 2021 Thomson Reuters and Contributors.

THE ROLE OF THE BRAZILIAN JUDICIARY IN TAX MATTERS IN THE CONTEXT OF THE COVID-19 PUBLIC CALAMITY

Objective: This article analyzes the main decisions related to tax matters in the context of the pandemic caused by Covid-19 in 2020. The survey focuses on cases in which the effects of the pandemic were taken as the main reason of the action, considering four issues: (1) taxes payment suspension;(2) requests for replacement of the judicial deposit for surety bonds;(3) suspension of restrictions imposed by the Fiscal Responsibility Law to the granting of tax benefits and (4) public debt refinancing. Methodology: The research adopted a deductive approach and bibliographic and documental research techniques, with the analysis of legal literature and of judgments of different instances of the Judiciary Branch on the subject. Results: The text concludes that the Judiciary Branch, especially the Federal Supreme Court, used its powers with caution in tax matters, as a rule limiting its decisions to protective measures while waiting for legislative ruling. Contributions: The article makes an original analysis of the Federal Supreme Court's stance during the pandemic, highlighting its attitude of self-restraint towards the legislative competences related to the economic crisis confrontation in tax matters, and of strong effectiveness, with the use of virtual instruments, in the conclusion of tax judgments that have long awaited the appreciation of the Court Full Bench. © 2021, Centro Universitario Curitiba - UNICURITIBA. All rights reserved.

EU Tax Strategy in the COVID-19 Pandemic

This article explores the EU's experience in finding tax revenues without compromising economic recovery. The EU's tax policy strategy envisages a stronger role for taxes in the development of a green, digital and inclusive Europe. It is recognized as fair to increase the tax burden on "polluters", digital and financial businesses, the largest corporations in the context of a single European economic space and fair tax competition of EU countries, excluding opportunities for tax base erosion. In 2021-2027 there are plans to increase the burden through the introduction of contributions on non-recycled plastic, border carbon adjustment mechanism, digital levy, financial transaction tax, revision of the CO2 emissions trading scheme. This could significantly complicate nonresident digital, financial and foreign economic activities in the EU as well as the EU's international relations. The reform is controversial and requires revision, taking into account international agreements and the national interests of partner countries. The set of tactical measures involves updating the norms of legislation to meet the requirements of the digital economy, increasing trust and transparency in tax relations, convenience and simplicity of tax payments, and expanding cooperation between tax authorities of EU countries. The experience and prospects of the EU tax policy are significant for Russia both in terms of implementation of the best practices and in terms of timely response to possible dangers and threats related to the ongoing tax reforms in the EU. © 2021 Institute of Europe Russian Academy of Sciences. All rights reserved.

METHODS OF TAX RISKS MANAGEMENT BY THE STATE IN THE CONTEXT OF THE CORONAVIRUS PANDEMIC (EXPERIENCE OF RUSSIA AND POLAND)

The article examines the methods of public governance during the first wave of coronavirus infection in the context of ensuring the national tax security. The authors use the experience of Russia and Poland - two post-socialist countries having the same foundations of administrative and legal systems. The purpose of the paper is to identify and evaluate the effectiveness of public governance methods used by public authorities to support the economic systems of Russia and Poland from the point of view of their impact on national tax security. The methodology is based on the philosophical theory of security which served as a basis for designing the characteristics of security risks and threats, as well as the principles of its provision. The authors also used the formal legal interpretation of legal acts to select normative legal acts fixing the applied methods of public administration as well as to clarify their provisions in accordance with the rules of formal logic and jurisprudence. The comparative method was used to select and compare Russian and Polish normative legal acts, Russian and foreign doctrinal sources in the field of theory and practice of public administration, administrative and tax law. The empirical basis of the research consists of normative legal acts and state statistics of the Russian Federation and the Republic of Poland, the International Monetary Fund and the World Bank. The characteristics of tax risks caused by the coronavirus pandemic are revealed, and their correlation with threats to tax security is established. The authors classified tax risk governance methods in the context of the coronavirus pandemic and characterized administrative and economic measures that directly and indirectly affect the tax system. Conclusions are made about the effectiveness of the main tax risk governance measures applied in Russia and Poland, while the Russian measures differ in a wide variety and a high proportion of proactive support measures. The theoretical and practical significance of the research lies in the fact that it allows to identify the existing potential of governance decisions in case of another wave of the pandemic or the emergence of new crisis phenomena in the economy, accompanied by a reduction in supply and demand in the markets (military conflicts, natural and man-made emergencies, etc.).

Taxes on wealth: time for another look?

Around the world, proposals for new taxes on the stock of wealth (a ‘wealth tax’) were gaining traction even before the fiscal tumult that has followed the COVID-19 pandemic. Piketty's ‘utopian ideal’ of a global wealth tax is perhaps the most prominent example.1 In the US, a new wealth tax proposed by Saez and Zucman (2019) was taken up by prominent candidates for the 2019 Democratic primaries. The OECD recently conducted a wide-ranging review of the wealth taxes already in operation within its member countries,2 and new empirical research has also examined the impacts of existing wealth taxes in a developing country context. The COVID-19 crisis has accelerated this interest in wealth taxes. First off the mark was Argentina, which in December 2020 passed a new one-off levy on its wealthiest citizens (with assets over $2.5 million) to pay for medical supplies and relief measures.4 In April 2021, in response to concerns about a $5 trillion surge in the wealth of the world's richest individuals during the pandemic, the UN Secretary-General urged governments to consider introducing a new ‘solidarity or wealth tax’.5 The International Monetary Fund has also recommended that countries consider taxes on high wealth, emphasising the ‘symbolic impact of this type of contribution’ in the context of recovery from the COVID-19 crisis.

Longer-term impacts of the Oakland, California, sugar-sweetened beverage tax on prices and volume sold at two-years post-tax.

Sugar-sweetened beverage (SSB) consumption is associated with obesity and independently associated with type 2 diabetes and cardiovascular disease. Not only is obesity a growing public health problem, but it is also most recently associated with increased risk of severe illness from COVID-19. Taxes on SSBs are a policy tool used to help curb SSB consumption and are currently implemented in 7 U.S. cities and more than 40 countries. On July 1, 2017, Oakland, California, implemented a 1-cent/ounce tax on SSBs with ≥25 kilocalories/12 ounces. This study estimated the impact of the Oakland tax on prices, volume sold, and cross-border shopping two-years post-tax relative to one-year pre-tax. Universal product code-level Nielsen retail scanner data on non-alcoholic beverage sales were analyzed using a difference-in-differences design with Sacramento, California, as the comparison site. Taxed beverage prices increased by 0.67 cents/ounce, on average, in Oakland relative to Sacramento, corresponding to 67% pass-through. Taxed beverage volume sold decreased by 18% in Oakland relative to Sacramento, with a larger decrease for family-size beverages (23%) relative to individual-size beverages (8%). There was a 9% increase in volume sold of taxed beverages in the two-mile border area surrounding Oakland relative to the Sacramento border area, driven by a 12% increase for family-size taxed beverages. After accounting for this cross-border shopping, there was a net decrease of 6% in taxed beverage volume sold in Oakland. There was no significant change in untaxed beverage volume sold in either Oakland or its border area relative to their respective comparison sites, suggesting there was no substitution to untaxed beverages and cross-border shopping may have been limited to taxed beverages. This two-year post-tax study of the Oakland SSB tax adds to the limited number of longer-term evaluations of local U.S. SSB taxes.

Citizens' Willingness to Support New Taxes for COVID-19 Measures and the Role of Trust.

The COVID-19 public health pandemic has seen governments spend trillions of dollars to limit the spread of the COVID-19 virus as well as to soften the economic blow from the shutting down of national economies. Subsequent budget shortfalls raise the question of how governments will pay for the direct and indirect costs associated with the COVID-19 pandemic. In this article, we study the public's willingness to contribute through paying a new tax, with a focus on Canada. We find that both generalized social and political trust are associated with a greater willingness to support a COVID-related tax and that generalized social trust, in particular, attenuates the negative effect of an experimentally manipulated, specified level of tax burden on policy support. These findings entail important implications for the public opinion and tax policies literature, as well as for policy makers. RELATED ARTICLES: Gainous, Jason, Stephen C. Craig, and Michael D. Martinez. 2008. "Social Welfare Attitudes and Ambivalence about the Role of Government." Politics & Policy 36 (6): 972-1004. https://doi.org/10.1111/j.1747-1346.2008.00147 Shock, David R. 2013. "The Significance of Opposition Entrepreneurs on Local Sales Tax Referendum Outcomes." Politics & Policy 41 (4): 588-614. https://doi.org/10.1111/polp.12028 Wagle, Udaya R. 2013. "The Heterogeneity Politics of the Welfare State: Changing Population Heterogeneity and Welfare State Policies in High-Income OECD Countries, 1980-2005." Politics & Policy 41 (6): 947-984. https://doi.org/10.1111/polp.12053.

VOLUNTAD DE LOS CIUDADANOS PARA APOYAR NUEVOS IMPUESTOS PARA LAS MEDIDAS COVID­19 Y EL PAPEL DE LA CONFIANZA: La pandemia de salud pública COVID­19 hizo que los gobiernos gastaran billones de dólares para limitar la propagación del virus COVID­19, así como para suavizar el golpe económico del cierre de las economías nacionales. Los posteriores déficits presupuestarios plantean la cuestión de cómo pagarán los gobiernos los costos directos e indirectos asociados con la pandemia de COVID­19. En este documento, estudiamos la disposición del público a contribuir mediante el pago de un nuevo impuesto. Encontramos que tanto la confianza social como política generalizada se asocian con una mayor disposición a apoyar un impuesto relacionado con COVID y que la confianza social generalizada en particular atenúa el efecto negativo de un nivel especificado de carga tributaria manipulado experimentalmente sobre el apoyo a las políticas. Estos hallazgos tienen implicaciones importantes para la opinión pública y la literatura sobre políticas fiscales, y también para los responsables de la formulación de políticas.