Open Daily: 10am - 10pm | Alley door pickup 10am - 7pm 3038 Hennepin Ave Minneapolis, MN
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  • Open Daily: 10am - 10pm
    Alley-side Pickup: 10am - 7pm

    3038 Hennepin Ave Minneapolis, MN
    612-822-4611

Open Daily: 10am - 10pm | Alley-side Pickup: 10am - 7pm
3038 Hennepin Ave Minneapolis, MN
612-822-4611
Formalisation Through Taxation: Paraguay's Approach and Its Implications

Formalisation Through Taxation: Paraguay's Approach and Its Implications

Richter, Jonas

Hardcover

EconomicsInvesting & Finance

ISBN10: 3030292819
ISBN13: 9783030292812
Publisher: Palgrave Pivot
Published: Oct 21 2019
Pages: 117
Weight: 0.68
Height: 0.38 Width: 5.83 Depth: 8.27
Language: English

In developing countries, such as Paraguay, informality remains a prevalent and persistent issue. Many avoid formal registration with the authorities and evade tax payments. However, a growing academic literature argues for an interrelation between a broader tax base and a country's economic and democratic development. A strand of this literature focuses on the means of taxing the informal sector and argues for positive revenue and growth effects. This Palgrave Pivot analyses Paraguay's 2004 and 2012 tax reforms using both qualitative and quantitative data. It illustrates that the country's personal income tax, as well as other alterations in the tax system, constitute an incentive and nudging mechanism that leads to a formalisation process of economic activity, and consequently to a broader tax base. Using interview and tax data, the book demonstrates how the reform initiates a rising demand of formalised purchases from both customers and businesses. It further suggests a potentialway of how the taxpayers respond politically to the enhanced fiscal imperative.

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