4. Taxational Research papers

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    Tax Revenue Mobilisation in Malawi
    (2019-07) Waziona Yohane Ligomeka
    This document examines the taxation system in Malawi, analyzing the evolution of tax policies and administration from independence in 1964 to the present. It highlights the significant reliance on direct taxes, contrasting Malawi's tax revenue performance with that of other sub-Saharan African countries. The study utilizes Afrobarometer survey data to assess tax morale, revealing notable increases in tax compliance in Malawi and Madagascar. The document discusses the establishment of the Malawi Revenue Authority (MRA) and the implementation of various reforms aimed at enhancing tax administration and compliance. It also addresses the challenges faced in accurately measuring tax morale and the implications of historical tax structures on current practices. Through a detailed examination of tax data and public perceptions, this analysis provides insights into the factors influencing tax compliance and the effectiveness of tax administration in Malawi.
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    Tax reform and tax yield in Malawi
    (Southern African Institute for Economic Research Zomba, Malawi, 1998) C. Chipeta
    The problem of this study is to evaluate tax reforms as instruments for raising tax yield in Malawi. The study tests two hypotheses: that the yield of the tax system as a whole, of its major components and of individual taxes, is not buoyant; and that the yield of the tax system as a whole, of its major components and of individual taxes is not income elastic. In order to test these hypotheses, two sets of regression equations were estimated. In the first set, tax revenue was regressed on GDP. Tax revenue was again regressed on GDP in the second set, but in individual tax revenue equations, dummy variables were used to capture discretionary tax changes. Moreover, in the total tax revenue equation, tax revenue adjusted for discretionary tax changes was the independent variable. On the basis of the econometric analysis, a few taxes are buoyant. The tax system as a whole is not. In the context of Malawi, relying on increasing tax rates, extending existing taxes to new activities and introducing new taxes are not sufficient for raising buoyancy of the tax system. Only PAYE tax (pay as you earn) is tax elastic. The whole tax system is not. To improve tax elasticity, the tax base must grow relative to GDP.