The Impact of Tax Pressure on Normal Tax Revenues in Algeria: An Autoregressive Distributed Lag (Ardl) Analysis (1999-2022).

Abstract

This study examines the impact of tax pressure on ordinary tax revenues in Algeria. The rates of tax pressure in Algeria are analyzed and are compared with the optimal rate, in addition, the causal relationship between tax collection and the most important possible determinants (tax evasion, tax pressure, tax concessions) determined using the ARDL model between 1999 and 2022. The results revealed that every increase in the volume of tax evasion results is offset by a decrease in the volume of tax collection, indicating a contrary relationship. The findings also revealed the results also confirmed the existence of an inverse relationship in the short-term (-0.196776) and long-term (-0.280923) between the rate of tax pressure and tax collection, despite its low rates outside of fuel, when compared to the optimal rate of 25%. This is due to excessive tax concessions that have eroded the tax base. Relying on petroleum collections to cover the state’s public.