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A Cost-Benefit Analysis of the Thailand Taxpayer Survey

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  • Nipon Poapongsakorn
  • Kovit Charnvitayapong
  • Duangmanee Laovakul
  • Somchai Suksiriserekul
  • Bev Dahlby

Abstract

We investigate whether more resources should be devoted to a Thai tax enforcement program which is aimed at bringing small businesses into the tax system. We show that the appropriate criteria for determining whether more resources should be devoted to tax enforcement is whether the Atkinson–Stern condition for the optimal provision of a publicly-provided good is satisfied, or equivalently, whether the marginal cost of finds obtained through additional tax enforcement, SMCF p , is less than the marginal cost of funds obtained through raising tax rates, SMCF t . In our base case scenario, the SMCF p is 11.60 which exceeds our estimate of the SMCF t for an across-the-board increase in income tax rates on wage earners. The use of pro-poor distributional weights makes expanding the survey less attractive if the alternative way of obtaining additional tax revenue is an across-the-board income tax rate increase, while aversion to tax evasion makes it more attractive. Copyright Kluwer Academic Publishers 2000

Suggested Citation

  • Nipon Poapongsakorn & Kovit Charnvitayapong & Duangmanee Laovakul & Somchai Suksiriserekul & Bev Dahlby, 2000. "A Cost-Benefit Analysis of the Thailand Taxpayer Survey," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 7(1), pages 63-82, February.
    • Handle: RePEc:kap:itaxpf:v:7:y:2000:i:1:p:63-82
    DOI: 10.1023/A:1008706113216
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    Cited by:

    1. Shun-ichiro Bessho & Masayoshi Hayashi, 2015. "Should the Japanese tax system be more progressive? An evaluation using the simulated SMCFs based on the discrete choice model of labor supply," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 22(1), pages 144-175, February.
    2. Mickaël Beaud & Thierry Blayac & Patrice Bougette & Soufiane Khoudmi & Philippe Mahenc & Stéphane Mussard, 2013. "Estimation du coût d'opportunité des fonds publics pour l'économie française," Working Papers halshs-01077141, HAL.
    3. Shun-ichiro Bessho & Masayoshi Hayashi, 2013. "Estimating the Social Marginal Cost of Public Funds," Public Finance Review, , vol. 41(3), pages 360-385, May.
    4. Liqun Liu, 2004. "The Marginal Cost of Funds and the Shadow Prices of Public Sector Inputs and Outputs," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 11(1), pages 17-29, January.
    5. Das-Gupta, Arindam, 2004. "Tax compliance costs and non-filing behaviour," Working Papers 04/5, National Institute of Public Finance and Policy.
    6. Nigar HASHIMZADE & Gareth MYLES, 2009. "Cost-benefit analysis and the marginal cost of public funds," Departmental Working Papers 2009-29, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.

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