کد مقاله | کد نشریه | سال انتشار | مقاله انگلیسی | نسخه تمام متن |
---|---|---|---|---|
5057737 | 1476606 | 2017 | 4 صفحه PDF | دانلود رایگان |
- A 1pp increase in the share of card payments in private consumption results in approximately 1% higher VAT revenue through increased compliance.
- Lowering the VAT rate can generate revenue gains.
- Card transactions may facilitate tax buoyancy.
The anticipated positive effect of card payments on VAT revenue performance has eluded empirical confirmation. The case of Greece provides a unique study ground, as the imposition of restrictions on cash withdrawals in July 2015 triggered a surge in card payments and in VAT revenue. Applying time-varying coefficient methods to Greek data during 2003q4-2016q2 we find that (i) a 1pp increase in the share of card payments in private consumption results in approximately 1% higher revenue through increased compliance; (ii) lowering the VAT rate can generate revenue gains; (iii) card transactions may facilitate tax buoyancy.
Journal: Economics Letters - Volume 157, August 2017, Pages 17-20