Factors Affecting Value Added Tax of the Regional Revenue Office 12

Abstract

This study aimed to examine the economic factors affecting Value Added Tax (VAT) and the efficiency of VAT collection from tax effort index of the Regional Revenue Office 12, by using the secondary data during 2002-2021. The analysis employed Pooled OLS Regression model to estimate the parameters. The estimated results from the model were calculated with the tax effort index of the Regional Revenue office 12. Results indicated that the Consumer Price Index by province, VAT in the previous years in each province, industrial sector revenue by province and population size by province are positively impacts on VAT revenue and significantly influenced VAT collection. When using the estimated results from the model to calculate tax effort index, Phatthalung Area Revenue Office had a tax effort index of less than unity. This indicates that VAT collection was lower than the estimated VAT revenue. Meanwhile, Trang Area Revenue Office and Satun Area Revenue Office demonstrated high capabilities in VAT collection. By ranking the efficiency of VAT collection, Satun Area Revenue Office had the highest average tax effort index of 1.0340, followed by Trang Area Revenue Office with 1.0023 and Phatthalung Area Revenue Office with 0.9618.