{"type":"script","doc_desc":{"producers":[{"name":"Reproducibility WBG","abbr":"DIME","affiliation":"World Bank - Development Impact Department","role":"Verification and preparation of metadata"}],"prod_date":"2024-08-06","version":"1"},"project_desc":{"authoring_entity":[{"name":"Christopher Hoy","affiliation":"World Bank","email":"choy@worldbank.org"},{"name":"Thiago Scot","affiliation":"World Bank","email":"tscot@worldbank.org"},{"name":"Alex Osugo","affiliation":"Kenya Revenue Authority"},{"name":"Anna Custers","affiliation":"World Bank"},{"name":"Daniel Zalo","affiliation":"Kenya Revenue Authority"},{"name":"Ruggero Doino","affiliation":"World Bank","email":"rdoino@worldbank.org"},{"name":"Jonathan Karver","affiliation":"World Bank","email":"jkarver@worldbank.org"},{"name":"Nicolas Orgeira Pillai","affiliation":"World Bank"}],"output":[{"type":"Working Paper","description":"Policy Research Working Paper (PRWP)","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 "}],"datasets":[{"name":"Turnover Tax Data","access_type":"Confidential and not included in the package","note":"Source: Kenya Revenue Authority. \nThese 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."},{"name":"Value-Added Tax Data","access_type":"Confidential and not included in the package","note":"Source: Kenya Revenue Authority. \nThese 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_type":"Published with the package","note":"File created by the authors that includes a review of Simplified Tax Regimes in Sub-Saharan Africa.\nLocated at: Data\/Raw\/str_overview.xlsx","name":"Simplified Tax Regimes in Sub-Saharan Africa"},{"name":"GEOJSON Countries","access_type":"Published with the package","uri":"https:\/\/geojson-maps.kyd.au\/","note":"Source: Natural Earth. \nLocated at: Data\/Raw\/custom.geo.json"}],"software":[{"name":"Stata","version":"18 MP"},{"name":"R","version":"4.3"}],"scripts":[{"title":"Reproducibility package (partial data and code) for Trade-offs in the Design of Simplified Tax Regimes: Evidence from Sub-Saharan Africa","file_name":"RR_KEN_2024_172.zip","zip_package":"RR_KEN_2024_172.zip","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"}],"title_statement":{"idno":"RR_KEN_2024_172","title":"Reproducibility package for Trade-offs in the Design of Simplified Tax Regimes: Evidence from Sub-Saharan Africa"},"acknowledgment_statement":"We would like to thank the staff and management of the Kenya Revenue Authority for supporting this study. This work was financed by the World Bank Global Tax Program. We are incredibly grateful for the support, input, and guidance provided by many colleagues, including Anne Brockmeyer, Emilia Skrok, Zeina Afif, Benu Bidani, Stephen Davenport, Matthew Collin, Chiara Bronchi and Cezen Ozer. We also greatly appreciate comments provided on an earlier version of this paper by Mahvish Shaukat","production_date":"2024-08","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.","geographic_units":[{"name":"Kenya","code":"KEN","type":"Country"}],"keywords":[{"name":"Taxation"},{"name":"Public Finance"},{"name":"Small Businesses"},{"name":"Randomized Experiment"}],"topics":[{"id":"D04","parent_id":"D","vocabulary":"Journal of Economic Literature (JEL)","uri":"https:\/\/www.aeaweb.org\/econlit\/jelCodes.php?view=jel","name":"Microeconomic Policy: Formulation, Implementation, and Evaluation"},{"id":"D80","parent_id":"D8","vocabulary":"Journal of Economic Literature (JEL)","uri":"https:\/\/www.aeaweb.org\/econlit\/jelCodes.php?view=jel","name":"Information, Knowledge, and Uncertainty - General"},{"id":"D90","parent_id":"D9","vocabulary":"Journal of Economic Literature (JEL)","uri":"https:\/\/www.aeaweb.org\/econlit\/jelCodes.php?view=jel","name":"Micro-Based Behavioral Economics - General"},{"id":" H20","parent_id":"H2","vocabulary":"Journal of Economic Literature (JEL)","uri":"https:\/\/www.aeaweb.org\/econlit\/jelCodes.php?view=jel","name":"Taxation, Subsidies, and Revenue - General"},{"id":"H30","parent_id":"H3","vocabulary":"Journal of Economic Literature (JEL)","uri":"https:\/\/www.aeaweb.org\/econlit\/jelCodes.php?view=jel","name":"Fiscal Policies and Behavior of Economic Agents -  General"},{"id":"H50","parent_id":"H5","vocabulary":"Journal of Economic Literature (JEL)","uri":"https:\/\/www.aeaweb.org\/econlit\/jelCodes.php?view=jel","name":"National Government Expenditures and Related Policies - General "}],"language":[{"name":"English","code":"EN"}],"data_statement":"Some data is confidential and has not been included in the reproducibility package. For more details, please refer to the README file.","repository_uri":[{"name":"Reproducible Research Repository (World Bank)","uri":"https:\/\/reproducibility.worldbank.org"}],"technology_environment":"Paper exhibits were reproduced on a computer with the following specifications:\n\u2013 OS: Windows 10 Enterprise\n\u2013 Processor: Intel(R) Core(TM) i5-1145G7 CPU @ 2.60GHz\n\u2013 Memory available: 15.7 GB\n\u2013 Software version: Stata version 18MP, R version 4.3\n","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.","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.","license":[{"name":"Modified BSD3","uri":"https:\/\/opensource.org\/license\/bsd-3-clause\/"}],"contacts":[{"affiliation":"World Bank","email":"rdoino@worldbank.org","name":"Ruggero Doino"},{"name":"Reproducibility WBG","affiliation":"World Bank","email":"reproducibility@worldbank.org"}]},"tags":[{"tag":"DOI"}],"schematype":"script"}