Determinants of Tax Revenue in Malawi

10 Pages Posted: 21 Dec 2016

See all articles by Michael Masiya

Michael Masiya

African Tax Administration Forum (ATAF)

Chiyembekezo Chafuwa

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

Mwayiwawo 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, 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)

African Tax Administration Forum (ATAF) ( email )

333 Grosvenor Street Hatfield Gardens
Block G
Hatfield, Gauteng 0181
South Africa

HOME PAGE: http://https://www.ataftax.org

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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