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    Estimating tax revenues lost from the agricultural informal sector through examining the margins in the informal supply chain and the value of production in the retail level
    (2012-01) Aloria, Madeiline Joy J.; Lozada, Kristine Emmanuelle A.
    A lot of relevant studies have been made regarding the reasons behind different fiscal issues that the country faces. The focus points of these studies include studying the potential benefits of improving our fiscal imbalances through fixing our general tax administration and collection since inefficiencies exist in unregulated and unmonitored areas of economy, specifically the informal sector. Despite the finding that the country's informal sector accounts for almost half of the country's labor force, not all transactions of the said sector are recorded or tracked; in order to help increase government revenues, these sectors must be scrutinized Efforts should be made in order to measure government revenues foregone and the potential revenues to be collected from taxpayers if the system becomes fixed The main objective of this paper is to estimate the amount of potential government revenues foregone due to the existence of the informal agricultural sector and consequently to propose to the government which specific parts of the supply chain should be taxed in the said sector. This can be achieved by measuring economic activities and estimating the marginal cost in the production of related goods and services. Important requisites are the full understanding of the nature of activities in the sector, informal sector enterprises, and the utilization of estimates of margins per crop for every level of the supply chain as well as of total employment which are readily available from the surveys conducted by the concerned government agencies. The target result connected to the said aims is to increase government revenues from tax.