A quantitative study of the effectiveness of the tax system in increasing general budget revenues in Yemen during the period (1990-2015 AD).

Abstract

After achieving unity, the Republic of Yemen faced many and accelerating challenges, including an increased deficit of the general budget as a result of the instability of oil production and prices, which contributes to the largest portion of the general budget revenues. This in turn, obligated the government to search for alternatives to public revenues and activate those alternatives, such as relying on taxes to finance its expenses.

The aim of this study is to determine how effective the tax system in increasing the general budget revenues in Yemen, by applying the Autoregressive Distributed Time Lags (ARDL) methodology. To achieve this, the following problem was posed: How effective is the tax system in increasing general budget revenues in Yemen?  After applying the standard study using the standard statistical program (Eviews.13), we concluded  that there is a long-term balanced relationship between taxes and public revenues.