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Assessment of fiscal effort and voluntary tax compliance in Peru

Author

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  • Aldo Fabricio Ramirez-Zamudio
  • José Luis Nolazco Cama

Abstract

This study examines the fiscal effort and voluntary compliance in the payment of taxes in Peru, given that in2014, the Peruvian economy collected only 52.8% of its total tax potential. Through an experiment, the research shows that dissuasive policies only do not explain the whole phenomenon of tax compliance; on the contrary, some psychological factors, denoted in the literature as “tax morale”, should also be considered in such study. Thus, if Peru expects to join the OECD (a goal for celebrating the bicentennial of its independence), it must improve tax compliance to standards equal to those of more developed countries; some non-dissuasive and low-cost public policies based on tax morale research may help to achieve this goal.

Suggested Citation

  • Aldo Fabricio Ramirez-Zamudio & José Luis Nolazco Cama, 2020. "Assessment of fiscal effort and voluntary tax compliance in Peru," Revista Finanzas y Politica Economica, Universidad Católica de Colombia, vol. 12(1), pages 55-88, June.
    • Handle: RePEc:col:000443:018472
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    References listed on IDEAS

    as
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    3. Carlos Caceres & Serhan Cevik & Ricardo Fenochietto & Borja Gracia, 2015. "The Day After Tomorrow: Designing an Optimal Fiscal Strategy for Libya," Journal of Banking and Financial Economics, University of Warsaw, Faculty of Management, vol. 2(4), pages 32-50, June.
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    6. Mr. Vito Tanzi & Mr. Hamid R Davoodi, 1997. "Corruption, Public Investment, and Growth," IMF Working Papers 1997/139, International Monetary Fund.
    7. repec:sgm:jbfeuw:v:2:y:2015:i:4:p:19 is not listed on IDEAS
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    More about this item

    Keywords

    tax burden; fiscal effort; tax morale.;
    All these keywords.

    JEL classification:

    • H32 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Firm
    • H30 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - General
    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance

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