Show simple item record

dc.contributor.authorNarayan, Paresh Kumaren_US
dc.date.accessioned2017-04-24T14:33:08Z
dc.date.available2017-04-24T14:33:08Z
dc.date.issued2003en_US
dc.date.modified2009-12-18T06:30:13Z
dc.identifier.issn09170553en_US
dc.identifier.doi10.1111/j.1467-940X.2003.00074.xen_AU
dc.identifier.urihttp://hdl.handle.net/10072/27725
dc.description.abstractValue Added Tax (VAT) is a general consumption tax levied on goods and services. In September 2002, in the face of mediocre economic performance, deteriorating government finances and stagnant investment levels - all due to the political coups of 2000 -an increase in VAT was recommended to Fijian policy makers by the IMF as a remedy to Fiji's problems. The Fiji government, without an in depth economy wide repercussions of a VAT policy, welcomed it by announcing a 25% increase in VAT in its 2003 budget. Beginning 1 January 2003 all goods and services were levied a VAT rate of 12.5%. In this paper, we use a computable general equilibrium model to examine the economy wide effects of this VAT policy. We find that while the VAT improves government revenue and brings about a small 0.6% increase in real GDP, it fails to address investment levels. VAT actually leads to a decline in investments and a reduction in real consumption and national welfare. We highlight that large amounts of tax revenue are owed to government. This is three times more than what government will collect from the 25% increase in VAT. In this light, an alternative to VAT is to upgrade government's tax collecting mechanism. From this we deduce that the IMF policy is misdirected.en_US
dc.description.peerreviewedYesen_US
dc.description.publicationstatusYesen_AU
dc.languageEnglishen_US
dc.language.isoen_AU
dc.publisherWiley-Blackwell Publishing Asiaen_US
dc.publisher.placeAustraliaen_US
dc.publisher.urihttp://www.wiley.com/bw/journal.asp?ref=0917-0553en_AU
dc.relation.ispartofpagefrom226en_US
dc.relation.ispartofpageto237en_US
dc.relation.ispartofissue3en_US
dc.relation.ispartofjournalReview of Urban & Regional Development Studiesen_US
dc.relation.ispartofvolume15en_US
dc.subject.fieldofresearchcode340208en_US
dc.titleThe Macroeconomic Impact of the IMF Recommended VAT Policy for the Fiji Economy: Evidence from a CGE Modelen_US
dc.typeJournal articleen_US
dc.type.descriptionC1 - Peer Reviewed (HERDC)en_US
dc.type.codeC - Journal Articlesen_US
gro.date.issued2003
gro.hasfulltextNo Full Text


Files in this item

FilesSizeFormatView

There are no files associated with this item.

This item appears in the following Collection(s)

  • Journal articles
    Contains articles published by Griffith authors in scholarly journals.

Show simple item record