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PRWP

Reproducibility package for Trade-offs in the Design of Simplified Tax Regimes: Evidence from Sub-Saharan Africa

2024
Get Reproducibility Package
Reference ID
RR_KEN_2024_172
DOI
https://doi.org/10.60572/radc-js24
Author(s)
Christopher Hoy, Thiago Scot, Alex Osugo, Anna Custers, Daniel Zalo, Ruggero Doino, Jonathan Karver, Nicolas Orgeira Pillai
Collections
World Bank Policy Research Working Papers
Metadata
JSON
Created on
Aug 07, 2024
Last modified
Aug 07, 2024
  • Project Description
  • Downloads
  • Overview
  • Reproducibility Package
  • Description
  • Scope and coverage
  • Disclaimer
  • Access and rights
  • Contacts
  • Information on metadata
  • Citation
  • Overview

    Abstract

    This paper provides novel evidence of the trade-offs policymakers face when designing simplified tax regimes for small businesses. Firstly, it provides a comprehensive stocktaking of the main features of these regimes across Sub-Saharan Africa: they are adopted by two-thirds of countries, but their design varies greatly. Secondly, it draws on administrative and survey data from Kenya to thoroughly examine a specific simplified tax regime. This analysis shows most small businesses lack knowledge about design features, such as the existence of a minimum exemption threshold, but they react strongly to increases in tax rates by lowering their declared turnover. Finally, it presents the results of an experiment testing an alternative design of a simplified tax regime that aims to better balance the trade-offs facing policymakers. This shows that providing simple guidance about how much small businesses with similar characteristics typically pay in tax can increase revenue, but this reduces equity among taxpayers.

    Reproducibility Package

    Scripts
    Readme Get Reproducibility Package
    Link: https://reproducibility.worldbank.org/index.php/catalog/172/download/480/README.pdf
    Reproducibility package (partial data and code) for Trade-offs in the Design of Simplified Tax Regimes: Evidence from Sub-Saharan Africa
    Title
    Reproducibility package (partial data and code) for Trade-offs in the Design of Simplified Tax Regimes: Evidence from Sub-Saharan Africa
    Date
    2024-08
    Dependencies
    All dependencies are stored in the ado folder (Stata) and renv.lock (R).
    Instructions
    See README in the reproducibility package.
    Notes
    Computational reproducibility verified by Development Impact (DIME) Analytics team, World Bank
    Source code repository
    Repository name URI
    Reproducible Research Repository (World Bank) https://reproducibility.worldbank.org
    Software
    Stata
    Name
    Stata
    Version
    18 MP
    R
    Name
    R
    Version
    4.3

    Reproducibility

    Technology environment

    Paper exhibits were reproduced on a computer with the following specifications:
    – OS: Windows 10 Enterprise
    – Processor: Intel(R) Core(TM) i5-1145G7 CPU @ 2.60GHz
    – Memory available: 15.7 GB
    – Software version: Stata version 18MP, R version 4.3

    Technology requirements

    ~20 minutes runtime

    Reproduction instructions

    The replication of the package was conducted using confidential data directly provided by the authors. Currently, the reproducibility package contains code and partial data, but it will not execute without the data from the Kenya Revenue Authority. Additionally, there is no standard procedure to obtain this data, making it unlikely that the replicator will acquire it. Nevertheless, both the code and outputs are shared to demonstrate the process the authors followed to achieve their findings.

    Data

    Datasets
    Turnover Tax Data
    Name
    Turnover Tax Data
    Note
    Source: Kenya Revenue Authority. These data are private and shared by the Kenya Revenue Authority under agreement, and cannot be disclosed. Includes three rounds of ToT data. There is no standard procedure to obtain this data.
    Access policy
    Confidential and not included in the package
    Value-Added Tax Data
    Name
    Value-Added Tax Data
    Note
    Source: Kenya Revenue Authority. These data are private and shared by the Kenya Revenue Authority under agreement, and cannot be disclosed. There is no standard procedure to obtain this data.
    Access policy
    Confidential and not included in the package
    Simplified Tax Regimes in Sub-Saharan Africa
    Name
    Simplified Tax Regimes in Sub-Saharan Africa
    Note
    File created by the authors that includes a review of Simplified Tax Regimes in Sub-Saharan Africa. Located at: Data/Raw/str_overview.xlsx
    Access policy
    Published with the package
    GEOJSON Countries
    Name
    GEOJSON Countries
    Note
    Source: Natural Earth. Located at: Data/Raw/custom.geo.json
    Access policy
    Published with the package
    Data URL
    https://geojson-maps.kyd.au/
    Data statement

    Some data is confidential and has not been included in the reproducibility package. For more details, please refer to the README file.

    Description

    Output
    Trade-offs in the Design of Simplified Tax Regimes: Evidence from Sub-Saharan Africa
    Type
    Working Paper
    Title
    Trade-offs in the Design of Simplified Tax Regimes: Evidence from Sub-Saharan Africa
    Authors
    Christopher Hoy, Thiago Scot, Alex Osugo, Anna Custers, Daniel Zalo, Ruggero Doino, Jonathan Karver, Nicolas Orgeira Pillai
    Description
    Policy Research Working Paper (PRWP)
    Authors
    Author Affiliation Email
    Christopher Hoy World Bank choy@worldbank.org
    Thiago Scot World Bank tscot@worldbank.org
    Alex Osugo Kenya Revenue Authority
    Anna Custers World Bank
    Daniel Zalo Kenya Revenue Authority
    Ruggero Doino World Bank rdoino@worldbank.org
    Jonathan Karver World Bank jkarver@worldbank.org
    Nicolas Orgeira Pillai World Bank
    Date of production

    2024-08

    Scope and coverage

    Geographic locations
    Location Code
    Kenya KEN
    Keywords
    Taxation Public Finance Small Businesses Randomized Experiment
    Topics
    ID Topic Parent topic ID Vocabulary Vocabulary URI
    D04 Microeconomic Policy: Formulation, Implementation, and Evaluation D Journal of Economic Literature (JEL)
    D80 Information, Knowledge, and Uncertainty - General D8 Journal of Economic Literature (JEL)
    D90 Micro-Based Behavioral Economics - General D9 Journal of Economic Literature (JEL)
    H20 Taxation, Subsidies, and Revenue - General H2 Journal of Economic Literature (JEL)
    H30 Fiscal Policies and Behavior of Economic Agents - General H3 Journal of Economic Literature (JEL)
    H50 National Government Expenditures and Related Policies - General H5 Journal of Economic Literature (JEL)

    Disclaimer

    Disclaimer

    The materials in the reproducibility packages are distributed as they were prepared by the staff of the International Bank for Reconstruction and Development/The World Bank. The findings, interpretations, and conclusions expressed in this event do not necessarily reflect the views of the World Bank, the Executive Directors of the World Bank, or the governments they represent. The World Bank does not guarantee the accuracy of the materials included in the reproducibility package.

    Access and rights

    License
    Name URI
    Modified BSD3 https://opensource.org/license/bsd-3-clause/

    Contacts

    Contacts
    Name Affiliation Email
    Ruggero Doino World Bank rdoino@worldbank.org
    Reproducibility WBG World Bank reproducibility@worldbank.org

    Information on metadata

    Producers
    Name Abbreviation Affiliation Role
    Reproducibility WBG DIME World Bank - Development Impact Department Verification and preparation of metadata
    Date of Production

    2024-08-06

    Document version

    1

    Citation

    Citation
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