Role of Tax Towards Government Revenue of Nepal

Pravesh Ghimire

doi:doi:10.11648/j.ijber.20190803.12

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Role of Tax Towards Government Revenue of Nepal

Pravesh Ghimire

Published in International Journal of Business and Economics Research (Volume 8, Issue 3)

Received: 25 March 2019 Accepted: 6 May 2019 Published: 29 May 2019

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Abstract

A modern government collects required funds through different sources; mainly from revenue and debt. Among different sources, taxation is the most important sources of government revenue and Gross Domestic Product (GDP) of a nation. In this paper, an attempt has been made to examine the contribution of tax revenue to GDP and government revenue of Nepal. The main questions addressed for the study were to find the proportion of tax in government revenue collection and to know whether the resource gap of Nepal is in increasing or decreasing trend. This study is mainly based on secondary data collected from government sources. Nationwide data of both direct and indirect taxes, total government revenue and GDP for the period of last fifteen years from F/Y 2002/03 to F/Y 2016/17 have been taken for the study. In order to assess the contribution of tax revenue on government revenue and GDP, co-relation and multiple regression analysis have been done separately and the results have been verified by using test statistics (t-test and f-tests). Similarly, to observe the long-term growth of tax revenue, time series analysis has been done by using straight line trend method. The study has concluded that GDP and government revenue have been strongly related with direct and indirect tax revenues of Nepal.

Published in	International Journal of Business and Economics Research (Volume 8, Issue 3)
DOI	10.11648/j.ijber.20190803.12
Page(s)	85-96
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Contribution of Tax Revenue (TR), Gross Domestic Product (GDP), Government Revenue (GR), Direct Tax (DT), Indirect Tax (IDT), Co-relation, Multiple Regression, Time Series Analysis

References

[1]	M. Feldstein, “The Effects of Tax-Based Saving Incentives on Government Revenue and National Saving”, Quarterly Jounal of Economics, May 1995, pp. 475–494.
[2]	Nepal Rastra Bank, “Trend in Nepal’s import duties: Implications with future trade liberalization”, Economic review: Special studies division, research department, 2002, pp. 152–176.
[3]	A. S. Gupta, “Determinats of Tax Revenue Efforts in Developing Countries,” IMF Working Paper, July 2007, pp. 1–39.
[4]	J. B. K. C., “Tax Laws and Tax Planning”, Khanal Books & Stationery, 2006.
[5]	R. Taha and N. Loganathan, “Causality between Tax Revenue and Government Spending in Malaysia”, The International Journal of Business and Finance Research, January 2008, pp. 63–73.
[6]	J. Agrawal, “Income Tax: Theory and Practice”, Ayam Publication, 2009.
[7]	U. S. Prasad, “Nepal’s excise systems and the legal frameworks: agendas for reform”, World customs journal, Vol. 9, No. 2, October 2015, pp. 53–70.
[8]	A. Yadav, M. Ali, M. Aris and S. Tuladhar, “Contribution of income tax and effects on revenue generation of Nepal”, International Journal of Scientific and Engineering Research, Vol. 6, Issue 1, January 2015, pp. 1200–1203.
[9]	D. Rossinglo, “Taxes, Expenditures, Poverty and Income Distribution in Argentina”, Commitment to Equity, Working Paper 45, May 2016.
[10]	O. Morrissey, C. V. Haldenwang, A. V. Schiller, M. Invanyna, I. Bordon, “Tax Revenue Performance and Vulnerability in Developing Countries”, The Journal of Developing Studies, Vol. 52, No. 12, May 2016, pp. 1689-1703.
[11]	M. T. Ajayi, I. Onuigbo, S. I. Shuaib, Z. S. Zafirah, “An evaluation of the relationship between variations in provision of infrastructural and payment of property tax in Ibadan north-east local government, Nigeria”, Journal of Technology Management and Business, Vol. 03, No. 02, 2016.
[12]	G. Mascagni, “A Fiscal History of Ethiopia: Taxation and Aid Dependence 1960-2010”, International Centre for Tax and Development, Working Paper 49, March 2016.
[13]	K. D. Dhakal, I. P. Bhattarai, G. P. Koirala and R. Bhattarai, “Tax Laws & Tax Planning in Nepal”, Asmita Books & Distributors, 2017.
[14]	Z. Ghodsi, A. Webster, “UK Taxes and Tax Revenues: Composition and Trends”, Intech Open 74380, Vol. 10, April 2018, pp. 83-96.
[15]	V. A. Mahler, “Indirect taxes and government inequality reduction: A cross-national analysis of the developed world”, Journal of Income Distribution, July 2018, pp. 1-26.
[16]	D. N. Gujrati, D. C Porter and S Gunasekar, “Basic Econometrics”, McGraw Hill Education (India), 2015.

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Pravesh Ghimire. (2019). Role of Tax Towards Government Revenue of Nepal. International Journal of Business and Economics Research, 8(3), 85-96. https://doi.org/10.11648/j.ijber.20190803.12

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Pravesh Ghimire. Role of Tax Towards Government Revenue of Nepal. Int. J. Bus. Econ. Res. 2019, 8(3), 85-96. doi: 10.11648/j.ijber.20190803.12

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Pravesh Ghimire. Role of Tax Towards Government Revenue of Nepal. Int J Bus Econ Res. 2019;8(3):85-96. doi: 10.11648/j.ijber.20190803.12

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@article{10.11648/j.ijber.20190803.12,
  author = {Pravesh Ghimire},
  title = {Role of Tax Towards Government Revenue of Nepal},
  journal = {International Journal of Business and Economics Research},
  volume = {8},
  number = {3},
  pages = {85-96},
  doi = {10.11648/j.ijber.20190803.12},
  url = {https://doi.org/10.11648/j.ijber.20190803.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijber.20190803.12},
  abstract = {A modern government collects required funds through different sources; mainly from revenue and debt. Among different sources, taxation is the most important sources of government revenue and Gross Domestic Product (GDP) of a nation. In this paper, an attempt has been made to examine the contribution of tax revenue to GDP and government revenue of Nepal. The main questions addressed for the study were to find the proportion of tax in government revenue collection and to know whether the resource gap of Nepal is in increasing or decreasing trend. This study is mainly based on secondary data collected from government sources. Nationwide data of both direct and indirect taxes, total government revenue and GDP for the period of last fifteen years from F/Y 2002/03 to F/Y 2016/17 have been taken for the study. In order to assess the contribution of tax revenue on government revenue and GDP, co-relation and multiple regression analysis have been done separately and the results have been verified by using test statistics (t-test and f-tests). Similarly, to observe the long-term growth of tax revenue, time series analysis has been done by using straight line trend method. The study has concluded that GDP and government revenue have been strongly related with direct and indirect tax revenues of Nepal.},
 year = {2019}
}

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TY  - JOUR
T1  - Role of Tax Towards Government Revenue of Nepal
AU  - Pravesh Ghimire
Y1  - 2019/05/29
PY  - 2019
N1  - https://doi.org/10.11648/j.ijber.20190803.12
DO  - 10.11648/j.ijber.20190803.12
T2  - International Journal of Business and Economics Research
JF  - International Journal of Business and Economics Research
JO  - International Journal of Business and Economics Research
SP  - 85
EP  - 96
PB  - Science Publishing Group
SN  - 2328-756X
UR  - https://doi.org/10.11648/j.ijber.20190803.12
AB  - A modern government collects required funds through different sources; mainly from revenue and debt. Among different sources, taxation is the most important sources of government revenue and Gross Domestic Product (GDP) of a nation. In this paper, an attempt has been made to examine the contribution of tax revenue to GDP and government revenue of Nepal. The main questions addressed for the study were to find the proportion of tax in government revenue collection and to know whether the resource gap of Nepal is in increasing or decreasing trend. This study is mainly based on secondary data collected from government sources. Nationwide data of both direct and indirect taxes, total government revenue and GDP for the period of last fifteen years from F/Y 2002/03 to F/Y 2016/17 have been taken for the study. In order to assess the contribution of tax revenue on government revenue and GDP, co-relation and multiple regression analysis have been done separately and the results have been verified by using test statistics (t-test and f-tests). Similarly, to observe the long-term growth of tax revenue, time series analysis has been done by using straight line trend method. The study has concluded that GDP and government revenue have been strongly related with direct and indirect tax revenues of Nepal.
VL  - 8
IS  - 3
ER  -

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Author Information

Pravesh Ghimire

Nepal Commerce Campus, Faculty of Management, Tribhuvan University, Kathmandu, Nepal

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APA Style

Pravesh Ghimire. (2019). Role of Tax Towards Government Revenue of Nepal. International Journal of Business and Economics Research, 8(3), 85-96. https://doi.org/10.11648/j.ijber.20190803.12

Copy | Download

ACS Style

Pravesh Ghimire. Role of Tax Towards Government Revenue of Nepal. Int. J. Bus. Econ. Res. 2019, 8(3), 85-96. doi: 10.11648/j.ijber.20190803.12

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AMA Style

Pravesh Ghimire. Role of Tax Towards Government Revenue of Nepal. Int J Bus Econ Res. 2019;8(3):85-96. doi: 10.11648/j.ijber.20190803.12

Copy | Download

@article{10.11648/j.ijber.20190803.12,
  author = {Pravesh Ghimire},
  title = {Role of Tax Towards Government Revenue of Nepal},
  journal = {International Journal of Business and Economics Research},
  volume = {8},
  number = {3},
  pages = {85-96},
  doi = {10.11648/j.ijber.20190803.12},
  url = {https://doi.org/10.11648/j.ijber.20190803.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijber.20190803.12},
  abstract = {A modern government collects required funds through different sources; mainly from revenue and debt. Among different sources, taxation is the most important sources of government revenue and Gross Domestic Product (GDP) of a nation. In this paper, an attempt has been made to examine the contribution of tax revenue to GDP and government revenue of Nepal. The main questions addressed for the study were to find the proportion of tax in government revenue collection and to know whether the resource gap of Nepal is in increasing or decreasing trend. This study is mainly based on secondary data collected from government sources. Nationwide data of both direct and indirect taxes, total government revenue and GDP for the period of last fifteen years from F/Y 2002/03 to F/Y 2016/17 have been taken for the study. In order to assess the contribution of tax revenue on government revenue and GDP, co-relation and multiple regression analysis have been done separately and the results have been verified by using test statistics (t-test and f-tests). Similarly, to observe the long-term growth of tax revenue, time series analysis has been done by using straight line trend method. The study has concluded that GDP and government revenue have been strongly related with direct and indirect tax revenues of Nepal.},
 year = {2019}
}

Copy | Download

TY  - JOUR
T1  - Role of Tax Towards Government Revenue of Nepal
AU  - Pravesh Ghimire
Y1  - 2019/05/29
PY  - 2019
N1  - https://doi.org/10.11648/j.ijber.20190803.12
DO  - 10.11648/j.ijber.20190803.12
T2  - International Journal of Business and Economics Research
JF  - International Journal of Business and Economics Research
JO  - International Journal of Business and Economics Research
SP  - 85
EP  - 96
PB  - Science Publishing Group
SN  - 2328-756X
UR  - https://doi.org/10.11648/j.ijber.20190803.12
AB  - A modern government collects required funds through different sources; mainly from revenue and debt. Among different sources, taxation is the most important sources of government revenue and Gross Domestic Product (GDP) of a nation. In this paper, an attempt has been made to examine the contribution of tax revenue to GDP and government revenue of Nepal. The main questions addressed for the study were to find the proportion of tax in government revenue collection and to know whether the resource gap of Nepal is in increasing or decreasing trend. This study is mainly based on secondary data collected from government sources. Nationwide data of both direct and indirect taxes, total government revenue and GDP for the period of last fifteen years from F/Y 2002/03 to F/Y 2016/17 have been taken for the study. In order to assess the contribution of tax revenue on government revenue and GDP, co-relation and multiple regression analysis have been done separately and the results have been verified by using test statistics (t-test and f-tests). Similarly, to observe the long-term growth of tax revenue, time series analysis has been done by using straight line trend method. The study has concluded that GDP and government revenue have been strongly related with direct and indirect tax revenues of Nepal.
VL  - 8
IS  - 3
ER  -

Copy | Download