DOCSLIB.ORG

Tax Reforms and Domestic Revenue Mobilization in Uganda

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Tax Reforms and Domestic Revenue Mobilization in Uganda Munich Personal RePEc Archive Tax Reforms and Domestic Revenue Mobilization in Uganda Ayoki, Milton and Obwona, Marios and Ogwapus, Moses Institute of Policy Research and Analysis, Economic Policy Research Centre, Ministry of Finance, Planning and Economic Development January 2005 Online at https://mpra.ub.uni-muenchen.de/80328/ MPRA Paper No. 80328, posted 23 Jul 2017 13:30 UTC Tax Reforms and Domestic Revenue Mobilization in Uganda Second Draft November 21, 2004 Revised January 05, 2005 Revised January 31, 2005 Global Development Network (GDN) Washington, D.C. Milton Ayoki Marios Obwona Moses Ogwapus Institute of Policy Research and Analysis P.O. Box 7138 Kampala - Uganda Tel: 256-41-232140 E-mail: [email protected] January 31, 2005 Foreword This report presents the major areas of research and key findings of the international research project on ‘Macroeconomic Policy Challenges of Low Income Countries’. The project aims to contribute to a better understanding of the macroeconomic problems of low income countries, and facilitate an exchange of views with academics and researchers based in developed economies, including those in the international financial community. In this report, the authors explore the options available for policy makers on revenue mobilization in Uganda. They tackle fundamental policy questions about what measures could result into fast revenue growth for Uganda focusing on the tax reforms and macroeconomic issues. The elasticity and buoyancy indexes computed for the pre and post-reform periods as well as for the combined period provide a framework through which the impact of the reforms on each index between the two periods can be discerned. The approach provides the basis for identifying the sources of fast revenue growth and/or lagging revenue growth in the tax system, and the components of revenue growth which are within or outside the control of authorities. This study offers practical lessons for Uganda and other African countries attempting to achieve their revenue targets. We thank the Uganda team for their recommendable work and the external reviewer, Professor Peter Warr of the Australian National University for his technical support. The project could not have been undertaken without the generous financial support of the Governments of United Kingdom and the Netherlands, the International Monetary Fund, and the World Bank. Gary McMahon and Robert Dodd at the GDN Secretariat in Washington, D.C. provided excellent administrative and professional back-up. However, the views expressed in this report are entirely those of the authors and do not necessary represent GDN’s own policies or views or of its funding partners. Global Development Network Table of Contents List of Tables and Figures ....................................................................................................................iv Executive Summary.............................................................................................................................iv 1. Introduction ................................................................................................................................. 1 2. Fiscal Operations and Tax Reforms ................................................................................................. 3 2.1 Aggregate level of government spending and the budget deficit ........................................................ 3 2.2 Uganda’s tax effort........................................................................................................................ 4 2.3 Major tax reforms in Uganda .......................................................................................................... 9 2.4 Structure of domestic taxes.......................................................................................................... 15 2.5 Revenue corruption ..................................................................................................................... 21 3. Methodology............................................................................................................................... 26 3.1 Elasticity index and tax buoyancy.................................................................................................. 26 3.2 Estimation procedure................................................................................................................... 28 3.3 Impact of macroeconomic variables on tax revenue........................................................................ 29 3.4 Proxy tax bases and data sources ................................................................................................. 31 4. Reforms and Responses of the Tax Revenues to Income ................................................................ 32 4.1 Elasticity estimates for the pre and post-reform period, combined ................................................... 32 4.2 Elasticity estimates for the pre-reform period................................................................................. 34 4.3 Elasticity estimates for post-reform period ..................................................................................... 35 4.4 Comparison between pre and post-reform period ........................................................................... 37 5. Tax Responses to Changing Economic Trends................................................................................. 37 5.1 Impact of external aid and fiscal deficit ......................................................................................... 38 5.2 Impact of foreign exchange rate................................................................................................... 39 5.3 Impact of inflation ....................................................................................................................... 40 5.4 Impact of literacy rate ................................................................................................................. 41 6. Conclusions ................................................................................................................................. 41 References ....................................................................................................................................... 44 Appendixes ...................................................................................................................................... 47 Notes............................................................................................................................................... 59 III List of Tables and Figures Table: 1. Summary of elasticity: direct and indirect taxes, and overall tax system vi 2. Summary of elasticity: import and excise duties, and VAT/sales tax vii 3. Uganda: Government revenues and expenditures, 1997/98-2003/04 3 4. Economic Indicators for Selected Countries in Sub-Saharan Africa 8 5. Value Added Tax in Selected SSA Countries, 2003/04 17 6. Uganda: Elasticity of main taxes, 1988/89-2003/04 32 7. Uganda: Elasticity of main taxes, 1988/89-1995/96 34 8. Uganda: Elasticity of main taxes, 1996/97-2003/04 35 9. Uganda: OLS Results for Income Tax and Import duty Revenues 37 Figure: 1. Tax Revenue as % of GDP, 1997-2004 5 2. Taxes on International Trade as % of Total Tax Revenue 6 3. Domestic Taxes on Goods and Services as % of Total Tax Revenue 6 IV Executive Summary This paper focuses on the requirement to increase government revenue in Uganda and the ways various taxes have responded to changing economic environment. Specifically, the paper looks at the tax reforms implemented by the government and how revenue yields of individual taxes and the overall tax system have responded to changes in GDP (or proxy bases). We computed elasticity and buoyancy indexes for the pre - and post-reform periods as well as the combined period based on primary data from four main sources: the Uganda Revenue Authority (URA); Uganda Bureau of Statistics (UBOS); Ministry of Finance, Planning and Economic Development; and Bank of Uganda. Fiscal operations and tax reforms Analysis shows that the growth in domestic revenue in Uganda has hardly kept pace with the growth of the economy especially the growing expenditure demands. In 2003/04, while the share of revenue to GDP was 12.6 percent, the share of total government expenditure to GDP was 24.1 percent. The fiscal deficit nearly doubled to 11.5 percent in 2003/04 from 6.5 percent in 1997/98. The absolute expansion in the size of government budget explains the increase in the budget deficit, which is partly financed by external borrowing. Major tax reforms implemented since 1990s aimed at addressing these fiscal challenges facing the country. Reforms were directed at improving administrative efficiency and to ensure better taxpayer compliance. It aimed at rationalizing the tax structure and rates, widening the tax base, reducing exemptions and simplifying tax procedures. High and differentiated taxes and tariff rates, burdensome bureaucratic requirements, discretionary exemptions and tax incentives were considered to be a source of inefficiency in the tax system. In order to improve revenue administration, the Uganda Revenue Authority (URA) was set up in 1991 as a semi-autonomous agency to collect taxes. The value-added-tax (VAT) was introduced in 1996 to replace Sales Tax and Commercial Transaction Levy (CTL). A new Income Tax Act was enacted in 1997. The Act broadened the definition of taxable IV income; and eliminated (most)
Load more

Recommended publications
  • Namibia Deloitte Taxation and Investment Guides Contents
    Oil and gas taxation in Namibia Deloitte taxation and investment guides Contents 1.0 Summary 1 6.0 Transactions 4 6.1 Capital gains 4 2.0 Corporate income tax 1 6.2 Asset disposals 4 2.1 In general 1 6.3 Like-kind exchanges and 2.2 Rates 1 involuntary conversions 4 2.3 Taxable income 1 7.0 Withholding taxes 5 2.4 Revenue 2 7.1 Dividends 5 2.5 Deductions and allowances 2 7.2 Interest 5 • Leasehold costs 7.3 Royalties 5 • Geological and geophysical costs 7.4 Other 5 • Intangible drilling and development costs 7.5 Tax treaties 5 • Depreciation 8.0 Indirect taxes 5 • Depletion 8.1 Value added tax, goods and 2.6 Losses 3 services tax, and sales and use tax 5 2.7 Foreign entity taxation 3 8.2 Import, export, and customs duties 6 3.0 Other corporate income tax 3 8.3 Excise tax 6 3.1 Additional profits taxes 3 8.4 Stamp tax 6 3.2 State taxation 3 8.5 State and municipal 6 3.3 Municipal taxation 3 9.0 Other 7 4.0 Tax incentives 3 9.1 Choice of business entity 7 4.1 Research and development 3 9.2 Foreign currency 7 5.0 Payments to related parties 4 10.0 Oil and gas contact information 8 5.1 Transfer pricing 4 5.2 Thin capitalization 4 5.3 Interest deductibility 4 Deloitte taxation and investment guides www.deloitte.com/taxguides Oil and gas tax guide Tax professionals of the member firms of Deloitte Touche Tohmatsu Limited have created the Deloitte International Oil and Gas Tax Guides, an online series that provides information on tax regimes specific to the oil and gas industry.
    [Show full text]
  • Worldwide Estate and Inheritance Tax Guide
    Worldwide Estate and Inheritance Tax Guide 2021 Preface he Worldwide Estate and Inheritance trusts and foundations, settlements, Tax Guide 2021 (WEITG) is succession, statutory and forced heirship, published by the EY Private Client matrimonial regimes, testamentary Services network, which comprises documents and intestacy rules, and estate Tprofessionals from EY member tax treaty partners. The “Inheritance and firms. gift taxes at a glance” table on page 490 The 2021 edition summarizes the gift, highlights inheritance and gift taxes in all estate and inheritance tax systems 44 jurisdictions and territories. and describes wealth transfer planning For the reader’s reference, the names and considerations in 44 jurisdictions and symbols of the foreign currencies that are territories. It is relevant to the owners of mentioned in the guide are listed at the end family businesses and private companies, of the publication. managers of private capital enterprises, This publication should not be regarded executives of multinational companies and as offering a complete explanation of the other entrepreneurial and internationally tax matters referred to and is subject to mobile high-net-worth individuals. changes in the law and other applicable The content is based on information current rules. Local publications of a more detailed as of February 2021, unless otherwise nature are frequently available. Readers indicated in the text of the chapter. are advised to consult their local EY professionals for further information. Tax information The WEITG is published alongside three The chapters in the WEITG provide companion guides on broad-based taxes: information on the taxation of the the Worldwide Corporate Tax Guide, the accumulation and transfer of wealth (e.g., Worldwide Personal Tax and Immigration by gift, trust, bequest or inheritance) in Guide and the Worldwide VAT, GST and each jurisdiction, including sections on Sales Tax Guide.
    [Show full text]
  • Doing Business in Germany 2017
    Doing business in Germany 2017 Moore Stephens Europe PRECISE. PROVEN. PERFORMANCE. Doing business in Germany 2017 Introduction The Moore Stephens Europe Doing Business In series of guides have been prepared by Moore Stephens member firms in the relevant country in order to provide general information for persons contemplating doing business with or in the country concerned and/or individuals intending to live and work in that country temporarily or permanently. Doing Business in Germany 2017 has been written for Moore Stephens Europe Ltd by Moore Stephens Deutschland AG. In addition to background facts about Germany, it includes relevant information on business operations and taxation matters. This Guide is intended to assist organisations that are considering establishing a business in Germany either as a separate entity or as a subsidiary of an existing foreign company It will also be helpful to anyone planning to come to Germany to work and live there either on secondment or as a permanent life choice. Unless otherwise noted, the information contained in this Guide is believed to be accurate as of 1 September 2017. However, general publications of this nature cannot be used and are not intended to be used as a substitute for professional guidance specific to the reader’s particular circumstances. Moore Stephens Europe Ltd provides the Regional Executive Office for the European Region of Moore Stephens International. Founded in 1907, Moore Stephens International is one of the world’s major accounting and consulting networks comprising 276 independently owned and managed firms and 626 offices in 108 countries around the world. Our member firms’ objective is simple: to be viewed as the first point of contact for all our clients’ financial, advisory and compliance needs.
    [Show full text]
  • Doing Business in Germany 2018
    Doing business in Germany 2018 Moore Stephens Europe PRECISE. PROVEN. PERFORMANCE. Doing business in Germany 2018 Introduction The Moore Stephens Europe Doing Business In series of guides have been prepared by Moore Stephens member firms in the relevant country in order to provide general information for persons contemplating doing business with or in the country concerned and/or individuals intending to live and work in that country temporarily or permanently. Doing Business in Germany 2018 has been written for Moore Stephens Europe Ltd by Moore Stephens Deutschland AG. In addition to background facts about Germany, it includes relevant information on business operations and taxation matters. This Guide is intended to assist organisations that are considering establishing a business in Germany either as a separate entity or as a subsidiary of an existing foreign company. It will also be helpful to anyone planning to come to Germany to work and live there either on secondment or as a permanent life choice. Unless otherwise noted, the information contained in this Guide is believed to be accurate as of 1 August 2018. However, general publications of this nature cannot be used and are not intended to be used as a substitute for professional guidance specific to the reader’s particular circumstances. Moore Stephens Europe Ltd provides the Regional Executive Office for the European Region of Moore Stephens International. Founded in 1907, Moore Stephens International is one of the world’s major accounting and consulting networks comprising 271 firms independently owned and managed firms and 614 offices in 112 countries around the world. Our member firms’ objective is simple: to be viewed as the first point of contact for all our clients’ financial, advisory and compliance needs.
    [Show full text]
  • Country Data-Namibia
    Public Disclosure Authorized Poverty Alleviation with Sustainable Growth F X F . .. Public Disclosure Authorized .,~~~'....L. -. ;,'4!XIf..X. .. i. K Public Disclosure Authorized ' ~E,*X.... F4.s,}* .i '.S.....- V..a{{ -' ., ___j__ ,__ ,__._____. , Public Disclosure Authorized A WORLD BANK COUNTRY STUDY Namibia Poverty Alleviation with Sustainable Growth The World Bank Washington, D.C. Copyright i 1992 The International Bank for Reconstruction and Development/THE WORLD BANK 1818 H Street, N.W. Washington, D.C. 20433, U.S.A. All rights reserved Manufactured in the United States of America First printing August 1992 World Bank Country Studies are among the many reports originally prepared for internal use as part of the continuing analysis by the Bank of the economic and related conditions of its developing member coumtries and of its dialogues with the governments. Some of the reports are published in this series with the least possible delay for. the use of governments and the academic, business and financial, and development communities. The typescript of this paper therefore has not been prepared in accordance with the procedures appropriate to formal printed texts, and the World Bank accepts no responsibility for errors. The World Bank does not guarantee the accuracy of the data induded in this publication and accepts no responsibility whatsoever for any consequence of their use. Any maps that accompany the text have been prepared solely for the convenience of readers; the designations and presentation of material in them do not imply the expression of any opinion whatsoever on the part of the World Bank, its affiliates, or its Board or member countries concerning the legal status of any country, territory, city, or area or of the authorities thereof or concerning the delimitation of its boundaries or its national affiliation.
    [Show full text]
  • Haiyambo.Tax Incentives and Foreign Direct Investment. the Nam Experience.Pdf
    POLYTECHNIC OF NAMIBIA HAROLD PUPKEWITZ GRADUATE SCHOOL OF BUSINESS Tax Incentives and Foreign Direct Investment: The Namibian Experience Emma Haiyambo Thesis submitted in partial fulfillment of the requirements for the degree Masters in International Business (MIB) in the Harold Pupkewitz Graduate School of Business at the Polytechnic of Namibia Supervisor: Tafirenyika Sunde Co-supervisor: Prof. Grafton Whyte July 2013 Tax Incentives and Foreign Direct Investment: The Namibian Experience ii Declaration By submitting this study, I declare that the entirety of the work contained therein is my own, and is original work. I have not previously in its entirety or in part submitted it for obtaining any qualification. Signature --------------------------------------- Date: September 2013 Tax Incentives and Foreign Direct Investment: The Namibian Experience iii Retension and use of thesis I, Emma Haiyambo, a candidate for the degree of Master in International Business accept the requirements of the Polytechnic of Namibia regarding the retention and use of Master’s thesis deposited in the library. In terms of these requirements, I give my consent that the original of my thesis deposited in the library will be accessible for purposes of study and research, in accordance with the normal conditions established by the librarian for the care, loan or reproduction of the thesis. Signature---------------------------------------------- Date: September 2013 Tax Incentives and Foreign Direct Investment: The Namibian Experience iv Acknowledgements My thanks goes firstly to the AlMIGHTY GOD for making this yet another step on my life’s journey. Secondly, to my supervisor, Mr Tafirenyika Sunde, for his support, advice and patience during the preparation of this dissertation.
    [Show full text]
  • Land, Food Security and Sustainable Development in Africa
    Land, Food Security and Sustainable Development in Africa Sam Moyo & Prosper B. Matondi African Institute for Agrarian Studies (AIAS) Paper prepared for the United Nations Economic Commission for Africa (UNECA), Sustainable Development Division (SDD), Ethiopia. The research assistance of Nelson Marongwe and Manyeu Mutamba is sincerely acknowledged. Table of Contents List of Tables ......................................................................................................................................... iii List of Figures ........................................................................................................................................ iii List of Charts ......................................................................................................................................... iii List of Boxes ........................................................................................................................................... iii List of Annexes ...................................................................................................................................... iii 1.0 Introduction .................................................................................................................................. 1 1.1 Objectives and Scope of the Study ................................................................................................ 1 1.2 Historical Context and Background ..............................................................................................
    [Show full text]
  • The Factors Influencing Attitudes of Namibian Taxpayers Towards Taxation
    THE FACTORS INFLUENCING ATTITUDES OF NAMIBIAN TAXPAYERS TOWARDS TAXATION by Olivia Nghaamwa 28320540 Submitted in partial fulfilment of the requirements for the degree Masters of Commercii (Taxation) in the FACULTY OF ECONOMIC AND MANAGEMENT SCIENCES at the UNIVERSITY OF PRETORIA Supervisors: Professor Marita Cronje Mrs. Hanneke du Preez Pretoria, South Africa September 2011 © University of Pretoria ACKNOWLEDGEMENTS “Trust in the LORD with all your heart and lean not on your own understanding. In all your ways acknowledge him, and he will make your paths straight.” – Proverbs 3:5-6 (KJV) I wish to express my sincere gratitude to the following persons: My parents for laying the foundation; My sisters, Tumweneni and Ndaitavela for their assistance in collecting books; Merlita Kennedy, Jeanette le Fleur and Evernice Tagara for their valuable comments on this paper; and Sally Harper from the Research Centre of The Namibian newspaper for her assistance in providing page numbers of the paper-based articles. ABSTRACT THE FACTORS INFLUENCING ATTITUDES OF NAMIBIAN TAXPAYERS TOWARDS TAXATION By Olivia Nghaamwa Supervisor: Mrs du Preez and Prof M Cronje Department: Taxation Degree: MCom (Taxation) The critical ingredient for revenue collection for any government is the attainment of a sufficient level of tax compliance on the part of taxpayers. Ideally any government would want one hundred percent compliance which would mean optimal tax collection. Tax compliance is influenced by the behaviours of taxpayers which are shaped by their attitudes, and such attitudes are influenced by various factors. Understanding taxpayers‟ behaviours in terms of factors that influence their attitudes towards tax compliance is therefore important in encouraging higher levels of compliance and minimisation of non- compliance.
    [Show full text]
  • Strategic Environmental Assessment for the Central Namib Uranium Rush
    Minisinistry of Mines and Energy Geologicogical Survey of Namibia (GSN) Bundesanstalt fürr GGeowissenschaften und Rohstoffee (B(BGR, Federal nstitutee forfo Geosciences and Natural Resourcources) Stratetegic Environmentalal Assessmssment for the centralal Nammib Uranium Rush MMain Report Final Report: January 2011 Prepared by: Southern Africrican Institute for Environmental Assessment Project Execution: Southern African Institute for Environmental Assessment (SAIEA) Financial Support: The German Federal Ministry for Economic Cooperation and Development, through the Federal Institute for Geosciences and Natural Resources Project Management: Dr Rainer Ellmies, BGR-GSN-Project of Technical Cooperation Project Coordination: Dr Gabi Schneider, Director of the Geological Survey of Namibia, and Dr Rainer Ellmies, BGR-GSN-Project of Technical Cooperation, Ministry of Mines and Energy. Private Bag 13297, Windhoek, Namibia © Ministry of Mines and Energy 2010 Citation MME (2010). Strategic Environmental Assessment for the central Namib Uranium Rush. Ministry of Mines and Energy, Windhoek, Republic of Namibia. Additional Information Dr Gabi Schneider Dr Rainer Ellmies Geological Survey of Namibia BGR-GSN-Project of Technical Cooperation Ministry of Mines and Energy Ministry of Mines and Energy Private Bag 13297 Private Bag 13297 Windhoek Windhoek Namibia Namibia [email protected] [email protected] Dr Peter Tarr Southern African Institute for Environmental Assessment P.O.Box 6322 Ausspannplatz Windhoek Namibia [email protected] Foreword By any standards, this is an impressive SEA. The report complies fully with the Terms of Reference and the SEA used an excellent process that was specifically designed and tailored – of necessity - to address the unusual challenge of the Uranium Rush. The SEA followed internationally accepted principles of good SEA practice and incorporated standard elements and steps.
    [Show full text]
  • NUPI Forum for Development Studies No.1 – 2001
    The Impact ofForum Multi-Party for Development Politics in StudiesSub-Saharan | No. 1-2001Africa 5 The Impact of Multi-Party Politics in Sub-Saharan Africa Nicolas van de Walle 1. Introduction A wave of democratisation spread through Africa in the early 1990s, representing the most significant political change in the continent since the independence period three decades before. Throughout Africa, significant political liberalisation resulted in the emergence of a free press, opposition parties, independent unions and a multi- tude of autonomous civic organisations. Botswana, Mauritius and Zimbabwe have conducted regular multi-party elections since their independence, and Senegal since 1979; but in 29 out of 47 states in the region, the first multi-party elections in over a generation took place between 1990 and 1994 (Bratton and van de Walle, 1997). In a smaller set of countries that had been non-democratic, these elec- tions were fully free and fair and resulted in the defeat and exit from power of the erstwhile authoritarian head of state. By the end of the decade, only a small minority of states were not officially multi-party electoral democracies, even if the practice of demo- cratic politics was often far from exemplary. Has the new, more open, political climate undermined economic reform in Africa? Has there been a negative (or positive) correla- tion between economic and political reform in the 1990s? What impact has democratisation had on the patterns that have charac- terised African politics in the past? It is important to understand the impact of democratisation on African economies because it can provide real insights into the dynamics of change in Africa’s con- temporary political economy.
    [Show full text]
  • Faculty of Agriculture and Natural Resources
    UNIVERSITY OF NAMIBIA FACULTY PROSPECTUS 2021 FACULTY OF AGRICULTURE AND NATURAL RESOURCES _____________________________________________________________________________________________ Copyright © 2021 University of Namibia. All rights reserved. Edited & Published by the Faculty of Agriculture and Natural Resources, University of Namibia, Windhoek 1 NOTE This Faculty Prospectus is valid for 2020 only. Regulations and curricula may be amended without prior notice. General regulations and information appear in the General Information and Regulations Prospectus. Although the information contained in this Faculty Prospectus has been compiled as accurately as possible, Council and Senate accept no responsibility for any errors and omissions that may occur. The University retains the right to amend any regulation or condition without prior notice. The information is correct up to 31 October 2021. The fact that particulars of a specific programme, subject or module have been included in this Faculty Prospectus does not necessarily mean that such a programme, subject or module will be offered in 2020or any subsequent year. This Faculty Prospectus must be read in conjunction with the General Information and Regulations Prospectus. 2 Table of Contents NOTE……………………………………………………………………………………………………………………………………………………………………… 2 FACULTYPREAMBLE……………………………………………………………………………………………………………………………………………….. 6 MISSION………………………………………………………………………………………………………………………………………………………………… 6 OBJECTIVES……………………………………………………………………………………………………………………………………………………………. 6 2020 ACADEMIC
    [Show full text]
  • An Analysis of the Impact of Taxation and Government Expenditure Components on Income Distribution in Namibia by Albinus Atugali
    An analysis of the impact of taxation and government expenditure components on income distribution in Namibia by Albinus Atugalikana Indongo submitted in accordance with the requirements for the degree of MASTER OF COMMERCE in the subject ECONOMICS at the UNIVERSITY OF SOUTH AFRICA SUPERVISOR: PROF. ZURIKA ROBINSON November 2018 DECLARATION Student number: 53157338 Degree: Master of Commerce in Economics I declare that “An analysis of the impact of taxation and government expenditure components on income distribution in Namibia” is my own work and all information sources that I have used or quoted have been indicated and acknowledged by means of complete references. _____ 15 November 2018__ Signature Date Albinus Atugalikana Indongo i ABSTRACT This research analyses the statistical relationship between income distribution and seven taxation and government expenditure components in Namibia using data from 1996-2016. The research is aimed at creating new knowledge on the research topic because no literature exists for Namibia. The Autoregressive Distributed Lag (ARDL) cointegration technique was employed to assess the long-run relationship between the dependent and independent variables in Eviews. The research findings indicated that there is no long-run relationship between the dependent variable and independent variables. In the short-run, the research findings indicate that government expenditure on social pensions and government expenditure on education have a balancing effect on income distribution, while tax on products, corporate income tax and customs and excise duties have an unbalancing and/or worsening effect on income distribution. Based on these findings, tertiary education loans are recommended as opposed to grants to ensure sustainability of Namibia Students Financial Assistance Fund (NASFAF).
    [Show full text]