Estimating Vat Pass Through

Author : Ms.Dora Benedek,Ruud A. de Mooij,Mr.Philippe Wingender
Publisher : International Monetary Fund
Page : 41 pages
File Size : 55,8 Mb
Release : 2015-09-30
Category : Business & Economics
ISBN : 9781513586359

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Estimating VAT Pass Through by Ms.Dora Benedek,Ruud A. de Mooij,Mr.Philippe Wingender Pdf

This paper estimates the pass through of VAT changes to consumer prices, using a unique dataset providing disaggregated, monthly data on prices and VAT rates for 17 Eurozone countries over 1999-2013. Pass through is much less than full on average, and differs markedly across types of VAT change. For changes in the standard rate, for instance, final pass through is about 100 percent; for reduced rates it is significantly less, at around 30 percent; and for reclassifications it is essentially zero. We also find: differing dynamics of pass through for durables and non-durables; no significant difference in pass through between rate increases and decreases; signs of non-monotonicity in the relationship between pass through and the breadth of the consumption base affected; and indications of significant anticipation effects together with some evidence of lagged effects in the two years around reform. The results are robust against endogeneity and attenuation bias.

Author : Dora Benedek
Publisher : Unknown
Page : 128 pages
File Size : 51,6 Mb
Release : 2015
Category : Exchange rate pass-through
ISBN : 151357258X

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Estimating VAT Pass Through by Dora Benedek Pdf

Author : International Monetary Fund
Publisher : International Monetary Fund
Page : 56 pages
File Size : 44,8 Mb
Release : 2021-03-05
Category : Business & Economics
ISBN : 9781513571546

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The Role of Market Structure and Timing in Determining VAT Pass-Through by International Monetary Fund Pdf

We examine the role of market characteristics and timing in explaining observed heterogeneity in VAT pass-through. We first extend existing theory to characterize the roles of imperfect competition and product differentiation, then investigate these relationships empirically using a panel of 14 Eurozone countries between 1999 and 2013. We find important roles for product market regulation and product quality, and little impact of advance announcement of reforms. Our findings have important implications for policy-makers considering VAT rate adjustments, by illuminating which of the consumers or the producers would experience the brunt of a reform across different settings.

Author : Mr.George A. Mackenzie
Publisher : International Monetary Fund
Page : 18 pages
File Size : 51,6 Mb
Release : 1991-02-01
Category : Business & Economics
ISBN : 9781451921465

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Estimating the Base of the Value-Added Tax (VAT) in Developing Countries by Mr.George A. Mackenzie Pdf

Developing countries with VATs typically exempt a large number of goods and services. Following a brief discussion of the rationale for exemptions, this paper presents a formula for the base of a VAT with exemptions. Two basic adjustments must be made to the base without exemptions: subtraction of the value of sales to consumers of exempt industries and addition of intermediate sales of taxable inputs to exempt industries. The paper concludes with a derivation of the elasticity of a VAT with exemptions with respect to aggregate consumption and a discussion of the implications of technological change for the VAT base.

Author : George A. (Sandy) Mackenzie
Publisher : Unknown
Page : 18 pages
File Size : 52,7 Mb
Release : 2006
Category : Electronic
ISBN : OCLC:1291212655

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Estimating the Base of the Value-Added Tax (Vat) in Developing Countries by George A. (Sandy) Mackenzie Pdf

Developing countries with VATs typically exempt a large number of goods and services. Following a brief discussion of the rationale for exemptions, this paper presents a formula for the base of a VAT with exemptions. Two basic adjustments must be made to the base without exemptions: subtraction of the value of sales to consumers of exempt industries and addition of intermediate sales of taxable inputs to exempt industries. The paper concludes with a derivation of the elasticity of a VAT with exemptions with respect to aggregate consumption and a discussion of the implications of technological change for the VAT base.

Author : Anonim
Publisher : Unknown
Page : 349 pages
File Size : 53,7 Mb
Release : 2011
Category : Sales tax
ISBN : 091825518X

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The VAT Reader by Anonim Pdf

Author : OECD
Publisher : OECD Publishing
Page : 85 pages
File Size : 49,8 Mb
Release : 2019-06-20
Category : Electronic
ISBN : 9789264344112

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The Role of Digital Platforms in the Collection of VAT/GST on Online Sales by OECD Pdf

This report provides practical guidance to tax authorities on the design and implementation of a variety of solutions for digital platforms, including e-commerce marketplaces, in the effective and efficient collection of VAT/GST on the digital trade of goods, services and intangibles. In particular, it includes new measures to make digital platforms liable for the VAT/GST on sales made by online traders through these platforms, along with other measures including data sharing and enhanced co-operation between tax authorities and digital platforms.

Author : International Monetary Fund. Western Hemisphere Dept.
Publisher : International Monetary Fund
Page : 69 pages
File Size : 45,5 Mb
Release : 2016-07-13
Category : Business & Economics
ISBN : 9781498356794

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The Bahamas by International Monetary Fund. Western Hemisphere Dept. Pdf

This 2016 Article IV Consultation highlights that economic growth in The Bahamas is estimated to have stalled in 2015, as a modest increase in air tourism arrivals was not sufficient to offset a contraction in domestic demand and weak exports of goods. Private consumption and investment were weighed down by headwinds from fiscal consolidation, as well as an end to construction. Inflation was moderate at 1.9 percent on average in 2015. Growth is expected to strengthen to about 0.5 percent in 2016, supported by continued growth in air tourist arrivals and moderating headwinds to private consumption and investment.

Author : Robert F. van Brederode
Publisher : Kluwer Law International B.V.
Page : 615 pages
File Size : 51,7 Mb
Release : 2021-08-09
Category : Law
ISBN : 9789403524245

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Virtues and Fallacies of VAT: An Evaluation after 50 Years by Robert F. van Brederode Pdf

Value-added tax (VAT) is a mainstay of revenue systems in more than 160 countries. Because consumption is a more stable revenue base than other tax bases, VAT is less distorting and hence more likely to encourage investment, savings, optimum labor supply decisions, and growth. VAT is not without criticism however, and faces its own specific technical and policy challenges. This book, the first to thoroughly evaluate VAT from a global policy perspective after over 50 years of experience with its intricacies, offers authoritative perspectives on VAT’s full spectrum—from its signal successes to the subtle ways its application can undermine revenue performance and economic neutrality. The contributors—leading tax practitioners and academics—examine the key policy issues and topics that are crucially relevant for measuring the success of the tax in the first part of the book, including: revenue generation and revenue efficiency; single rate versus multiple rates; susceptibility to fraud; exemptions and exceptions; compliance cost for businesses; policy and compliance gaps in revenue collection; adjustment rules caused by the transactional nature of the tax; transfer pricing issues; treatment of vouchers; permanent establishments and holding companies; payment of refunds; cross-border digital transactions; and supplies for free or below cost price. The second part offers six country reports—on New Zealand, Japan, China, Colombia, Ethiopia, and India—to demonstrate the different ways in which VAT operates in a variety of national economies. Whether a government is contemplating the imposition of a general consumption tax for the first time or new rules for applying an existing one, it is important for policymakers to keep central the aim to design a tax that realizes optimal efficiency and causes minimal distortions. This invaluable book serves as an expert guide to VAT policy development in this area. It will be welcomed not only by concerned government officials but also by tax professionals (both lawyers and accountants) and academics in tax law.

Author : Rodrigo Mariscal,Alejandro M. Werner
Publisher : International Monetary Fund
Page : 46 pages
File Size : 47,8 Mb
Release : 2018-11-08
Category : Business & Economics
ISBN : 9781484384190

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The Price and Welfare Effects of The Value-Added Tax: Evidence from Mexico by Rodrigo Mariscal,Alejandro M. Werner Pdf

In this paper we analyze the incidence of the VAT and its effects on the income distribution. To identify these effects, we rely on two tax reforms undertaken in Mexico that increased the VAT rate for a group of cities and left the rest unaffected. We compare the inflation rate of the affected cities with the exempted cities before and after the law changed. We find that the effect on prices is limited and conclude that the burden of the tax is indeed shared between producers and consumers. Regarding welfare, we find that the VAT is progressive in both absolute and relative terms to the overall expenditure. Finally, we show that an identical change in the VAT rate when inflation is high and persistent doubles its pass-through to inflation and its welfare loss for the average household.

Author : OECD
Publisher : OECD Publishing
Page : 80 pages
File Size : 40,5 Mb
Release : 2023-09-13
Category : Electronic
ISBN : 9789264810662

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Tax Policy Reforms 2023 OECD and Selected Partner Economies by OECD Pdf

This is the eighth edition of Tax Policy Reforms: OECD and Selected Partner Economies, an annual publication that provides comparative information on tax reforms across countries and tracks tax policy developments over time. The report covers the tax policy reforms introduced or announced in 2022 in 75 member jurisdictions of the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting, including all OECD countries.

Author : Sijbren Cnossen
Publisher : Oxford University Press
Page : 400 pages
File Size : 43,7 Mb
Release : 2019-07-16
Category : Business & Economics
ISBN : 9780192582379

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Modernizing VATs in Africa by Sijbren Cnossen Pdf

Most African countries are in dire need of more tax revenue. In 28 out of 45 countries with a value-added tax (VAT), total tax revenue as a percentage of GDP is around 15% or less, falling short of what is necessary to finance basic human and economic development. Far from being revenue-raising instruments, current African VATs are riddled with exemptions, exclusions, and zero rates on domestic goods and services that depress revenue, are highly distortionary, and greatly complicate the administration of VAT. Modernizing VATs in Africa enables policymakers, professionals, and students to analyse African tax systems to ascertain how they can be modernized. It explains the case for VAT base-broadening over rate-increasing, arguing that exemptions and zero rates mainly accrue benefits for higher-income groups. Even more persuasively, it demonstrates that the net result of fiscal systems can be equalizing if the revenue of broad-based VATs is used to finance in-kind transfers, such as healthcare and education. VAT modernization should be used to enable governments to finance development; Modernizing VATs in Africa puts a compelling case forward for how and why this can be achieved.

Author : Mr.Serhan Cevik
Publisher : International Monetary Fund
Page : 14 pages
File Size : 48,6 Mb
Release : 2016-08-26
Category : Business & Economics
ISBN : 9781475530193

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Smoke Screen by Mr.Serhan Cevik Pdf

This paper estimates the magnitude and speed of tax pass-through across tobacco products at different price points in Pakistan by using a novel dataset of monthly observations on cigarette prices in 50 cities during the period 2004-2015. The pass-through of cigarette taxes to retail prices is found to occur within two months, but is mostly incomplete in magnitude. On average, a one-rupee tax increase is estimated to lead to an increase of only PRs 0.8 in retail cigarette prices. This is driven by the fact that tobacco manufacturers absorb a significant part of the tax increase. For the premium brand, however, I observe full passthrough, indicating possibilities of different demand elasticities across product tiers. These findings are likely to be attributable to competitive market pressures, especially at the budget end of the price spectrum, possibly stemming from changing consumption patterns with greater awareness of health risks as well as the impact of illicit domestic production.

Author : International Monetary Fund. Middle East and Central Asia Dept.
Publisher : International Monetary Fund
Page : 83 pages
File Size : 46,7 Mb
Release : 2019-04-02
Category : Business & Economics
ISBN : 9781498306379

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Kuwait by International Monetary Fund. Middle East and Central Asia Dept. Pdf

This Article IV Consultation highlights that growth has strengthened, and fiscal and external positions improved due to higher oil prices. The increased uncertainty about oil price prospects though underscores the need to reduce dependence on oil and increase savings for the future. The key priority is to build national consensus around equitable and well-sequenced reforms to underpin fiscal consolidation and promote the private sector. While authorities’ efforts to strengthen the fiscal accounts are welcomed, more ambitious reforms will be needed to secure adequate savings for future generations and reduce financing needs. Reforming the public wage bill, subsidies, and transfers, raising non-oil revenue, and enhancing the fiscal policy framework and governance are expected to support fiscal consolidation and increase the efficiency of spending on human and physical capital. Creating jobs for the large number of nationals joining the labor force over the next decade hinges on the emergence of a vibrant private sector.

Author : Martin, Will
Publisher : Intl Food Policy Res Inst
Page : 28 pages
File Size : 52,7 Mb
Release : 2017-02-09
Category : Political Science
ISBN : 8210379456XXX

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Trade and economic impacts of destination-based corporate taxes by Martin, Will Pdf

Current US proposals for destination-based corporate taxes that effectively combine a value-added tax (VAT) and a wage subsidy raise important policy questions for countries considering them, and for their trading partners. This tax/subsidy package would not create trade barriers or export subsidies, and any changes in trade would result from the measures’ distributional consequences or short-run impacts on output. The package would leave business profits and rents untaxed, placing the burden of the tax entirely on consumers, with no offset from exchange rate appreciation. If anything, its introduction could cause a short-run real exchange rate depreciation. A key concern regarding this package is its small, volatile, and vulnerable revenue yield. At current US consumption and labor shares of gross domestic product (GDP), a 20 percent corporate cash-flow tax with a wage subsidy would generate only around 2 percent of GDP in revenues, a result that could be obtained with much less volatility from a 2.8 percent tax without the wage subsidy. Under the tax/subsidy regime, revenues would become negative if consumption and labor shares returned to their historical norms, requiring increases in other taxes. A 20 percent tax would raise consumer prices by up to 27 percent, taking into account state sales taxes, sharply cutting the living standards of people on fixed incomes. The average combined consumption tax rate of 33 percent would be the highest in the world and more than double the world-average VAT rate, creating incentives for avoidance and evasion.