Corporate tax, has significantly become one of the major sources of revenue to the government. Whether the economy is shadow, enriched or booming, its government needs some revenue to promote and to lubricate its formal sector. Because of this, corporate tax at varying rates are being agreed and set by Zimbabwean government. However, less on the effects of corporate tax on revenue yields seems to be known and understood in Zimbabwe. Our conjecture was to study the effects of varying corporate tax rate on revenue. We used the simple logistic harvesting model with varying effort coefficient. Quantitative, qualitative and geometric methods were used for model results and analysis. The research was more of theoretical with a small data set used only for validating the polynomial estimation model. Interestingly, all the methods seem to move in the same direction. The results suggest that revenue is inversely related to company tax. Lastly, we used a Lagrange polynomial to predict possible revenue output from any given corporate tax rate. So, the government can use the polynomial framework when considering a revenue-neutral tax reform to apply to its economy. To validate the polynomial function, we applied the mean absolute percentage error method which supported its use.
| Published in | International Journal of Business and Economics Research (Volume 8, Issue 4) |
| DOI | 10.11648/j.ijber.20190804.14 |
| Page(s) | 192-200 |
| Creative Commons |
This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited. |
| Copyright |
Copyright © The Author(s), 2019. Published by Science Publishing Group |
Corporate Tax Effort, Lagrange Polynomial, Revenue, Output, Simple Logistic Harvesting Model, Variations
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APA Style
Leonard Mushunje. (2019). Modelling the Effects of Variations in Corporate Tax Rate on Revenue Output in Zimbabwe. International Journal of Business and Economics Research, 8(4), 192-200. https://doi.org/10.11648/j.ijber.20190804.14
ACS Style
Leonard Mushunje. Modelling the Effects of Variations in Corporate Tax Rate on Revenue Output in Zimbabwe. Int. J. Bus. Econ. Res. 2019, 8(4), 192-200. doi: 10.11648/j.ijber.20190804.14
AMA Style
Leonard Mushunje. Modelling the Effects of Variations in Corporate Tax Rate on Revenue Output in Zimbabwe. Int J Bus Econ Res. 2019;8(4):192-200. doi: 10.11648/j.ijber.20190804.14
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Download@article{10.11648/j.ijber.20190804.14,
author = {Leonard Mushunje},
title = {Modelling the Effects of Variations in Corporate Tax Rate on Revenue Output in Zimbabwe},
journal = {International Journal of Business and Economics Research},
volume = {8},
number = {4},
pages = {192-200},
doi = {10.11648/j.ijber.20190804.14},
url = {https://doi.org/10.11648/j.ijber.20190804.14},
eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijber.20190804.14},
abstract = {Corporate tax, has significantly become one of the major sources of revenue to the government. Whether the economy is shadow, enriched or booming, its government needs some revenue to promote and to lubricate its formal sector. Because of this, corporate tax at varying rates are being agreed and set by Zimbabwean government. However, less on the effects of corporate tax on revenue yields seems to be known and understood in Zimbabwe. Our conjecture was to study the effects of varying corporate tax rate on revenue. We used the simple logistic harvesting model with varying effort coefficient. Quantitative, qualitative and geometric methods were used for model results and analysis. The research was more of theoretical with a small data set used only for validating the polynomial estimation model. Interestingly, all the methods seem to move in the same direction. The results suggest that revenue is inversely related to company tax. Lastly, we used a Lagrange polynomial to predict possible revenue output from any given corporate tax rate. So, the government can use the polynomial framework when considering a revenue-neutral tax reform to apply to its economy. To validate the polynomial function, we applied the mean absolute percentage error method which supported its use.},
year = {2019}
}
TY - JOUR T1 - Modelling the Effects of Variations in Corporate Tax Rate on Revenue Output in Zimbabwe AU - Leonard Mushunje Y1 - 2019/07/09 PY - 2019 N1 - https://doi.org/10.11648/j.ijber.20190804.14 DO - 10.11648/j.ijber.20190804.14 T2 - International Journal of Business and Economics Research JF - International Journal of Business and Economics Research JO - International Journal of Business and Economics Research SP - 192 EP - 200 PB - Science Publishing Group SN - 2328-756X UR - https://doi.org/10.11648/j.ijber.20190804.14 AB - Corporate tax, has significantly become one of the major sources of revenue to the government. Whether the economy is shadow, enriched or booming, its government needs some revenue to promote and to lubricate its formal sector. Because of this, corporate tax at varying rates are being agreed and set by Zimbabwean government. However, less on the effects of corporate tax on revenue yields seems to be known and understood in Zimbabwe. Our conjecture was to study the effects of varying corporate tax rate on revenue. We used the simple logistic harvesting model with varying effort coefficient. Quantitative, qualitative and geometric methods were used for model results and analysis. The research was more of theoretical with a small data set used only for validating the polynomial estimation model. Interestingly, all the methods seem to move in the same direction. The results suggest that revenue is inversely related to company tax. Lastly, we used a Lagrange polynomial to predict possible revenue output from any given corporate tax rate. So, the government can use the polynomial framework when considering a revenue-neutral tax reform to apply to its economy. To validate the polynomial function, we applied the mean absolute percentage error method which supported its use. VL - 8 IS - 4 ER -
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