Problems and Recommendations for Government Performance Evaluation on Taxation Policy
Asian Tax Journal Vol. 18 No. 6 (2017), pp. 285-309
Abstract
This paper examines the association among score items used for taxation policy evaluation, and also relationship between evaluation on tax policy and relative importance using government reports from 2011 to 2016. Reports used in the paper include specific details of tax policy evaluation and actual scores for each evaluation item. We analyze the adequacy of ‘Ministry of Strategy and Finance’ tax policy evaluation system and provide recommendations based on empirical results. We found following problems based on results of empirical analysis. First, there is a lack of connection between evaluation on overall policy process and policy effectiveness, therefore we suggest stronger qualification procedures regarding long－term effects of each policy and strengthen the correlation between long－term tax policy application plan and policy effectiveness evaluation. Second, department－level compensation based on policy evaluation scores should be reduced. Third, ex－ante performance target and evaluation system should be enhanced, instead of mainly focusing on ex－post evaluation. Fourth, we suggest the existence of performance evaluation committee, and analyze policies on a regular basis. This paper provides recommendations on government tax policy evaluation system, and expects to enhance efficiency of taxation policy. Our study extends existing studies by providing empirical results on tax policy evaluation using actual evaluated score in addition to qualitative analysis.
Keywords
- Government Policy Performance Evaluation
- Public Sector Performance Management
- Taxation Policy
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