Support to the Moldovan State Tax Service - Tax Gap Analysis and Findings
45 Pages Posted: 15 Sep 2016
Date Written: May 2016
Abstract
This paper explores areas where Moldovan tax authorities can increase tax (revenue) collection. We find that the overall tax gap – for personal income, business, value-added, and tobacco/alcohol excise taxes – likely comes to 20 percent of GDP. We show several methods for estimating Moldova’s various tax gaps – illustrating the methods with numerous “market sizing” estimates. We particularly illustrate the tax gap methodology using company taxes, where we employ both top-down and bottom-up methods in order to illustrate the general approach to tax gap analysis.
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Keywords: Moldova, tax gap
JEL Classification: H2, H21, H27
Suggested Citation: Suggested Citation