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Determinants of Tax Revenue in Malawi

10 Pages Posted: 21 Dec 2016  

Michael Masiya

Malawi Revenue Authority

Chiyembekezo Chafuwa

Government of Malawi - Policy Planning & Research (PPR) Division

Mwayiwawo Sarah Donda

Government of Malawi - Policy Planning & Research (PPR) Division

Date Written: January 1, 2015

Abstract

The study regresses tax revenue on a number of variables to ascertain the significant determinants of tax in Malawi. Using monthly data from 2003 to 2012, the study includes a lagged dependent variable in an OLS regression to find that GDP has a positive impact on tax revenue in Malawi and an increase in broad money will lead to enhanced revenue collections. The study concludes that monetary authorities should collaborate with tax authorities in the formulation of tax and monetary policies as their effects interact. The study also urges the government to adopt policies that are aimed at boosting economic production as this eventually enhances tax revenues.

Keywords: Tax Revenue, GDP, buoyancy, broad money

JEL Classification: H20, H25

Suggested Citation

Masiya, Michael and Chafuwa, Chiyembekezo and Donda, Mwayiwawo Sarah, Determinants of Tax Revenue in Malawi (January 1, 2015). Available at SSRN: https://ssrn.com/abstract=2887852 or http://dx.doi.org/10.2139/ssrn.2887852

Michael Masiya (Contact Author)

Malawi Revenue Authority ( email )

Policy Planning & Research
P/Bag 247
Blantyre
Malawi

Chiyembekezo Chafuwa

Government of Malawi - Policy Planning & Research (PPR) Division ( email )

Malawi

Mwayiwawo Donda

Government of Malawi - Policy Planning & Research (PPR) Division ( email )

Malawi

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