Author: Mr.Santiago Acosta Ormaechea
Publisher: International Monetary Fund
ISBN: 1498312233
Category : Business & Economics
Languages : en
Pages : 38
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Book Description
Does the design of a tax matter for growth? Assembling a novel dataset for 30 OECD countries over the 1970-2016 period, this paper examines whether the value added tax (VAT) may have different effects on long-run growth depending on whether it is raised through the standard rate or through C-efficiency (a measure of the departure of the VAT from a perfectly enforced tax levied at a single rate on all consumption). Our key findings are twofold. First, for a given total tax revenue, a rise in the VAT, financed by a fall in income taxes, promotes growth only when the VAT is raised through C-efficiency. Second, for a given VAT revenue, a rise in Cefficiency, offset by a fall in the standard rate, also promotes growth. The implication is thus that in OECD countries broadening the VAT base through fewer reduced rates and exemptions is more conducive to higher long-run growth than a rise in the standard rate.
Author: Jessica A. Skelly
Publisher:
ISBN:
Category : Value-added tax
Languages : en
Pages : 24
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Book Description
Author: James M. Bickley
Publisher:
ISBN:
Category : Small business
Languages : en
Pages : 32
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Book Description
Author: United States. General Accounting Office
Publisher:
ISBN:
Category : Value-added tax
Languages : en
Pages : 60
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Book Description
Author:
Publisher:
ISBN:
Category : Economic development
Languages : en
Pages :
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Book Description
This dissertation evaluates the empirical relation between the value-added tax (VAT) and the level of aggregate consumption. Furthermore, it develops a theoretical framework and an empirical analysis to study the impact of the VAT, as a form of taxing consumption, on capital accumulation, productivity growth, and overall economic growth. While recent theoretical work shows that the VAT may boost capital accumulation and growth by encouraging more savings, we find that the net impact of consumption taxes on growth and its sources is theoretically ambiguous, and depends on the interaction between utility parameters, the interest rate, and the tax structure. Moreover, we develop a theoretical model to study the tax design problem in order to rationalize the observed variation in effective VAT rates over time in our sample. This framework considers both equity and efficiency as important factors determining optimal tax structure, and we identify conditions under which taxes could be evolving or constant over time. Empirically, we use a panel of 15 European Union countries and employ the recently developed GMM dynamic panel techniques. After controlling for the potential biases associated with persistence, endogeneity, simultaneity, measurement error, omitted variables, and unobserved country-specific effects, we find that (i) the VAT exerts a negative impact on the level of aggregate consumption, (ii) the VAT affects physical capital accumulation positively, which feeds through to overall GDP growth, and (iii) productivity growth seems to be a less relevant channel for the VAT to influence economic growth.
Author: Asian Development Bank
Publisher: Asian Development Bank
ISBN: 9292705792
Category : Law
Languages : en
Pages : 114
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Book Description
Value-added tax (VAT) generates significant government revenue in many countries and given their broad coverage, VAT measurements are useful indicators for economic and fiscal analyses. This publication presents the Asian Development Bank’s National Accounts Statistics Value-Added Tax model, which is designed to provide a more consistent measure of non-recoverable VAT on products for national account statistics. Highlighting application results in Armenia, Kazakhstan, and Uzbekistan, it explains how the model can be used in balancing and reconciling supply and use tables as well as to assess VAT gaps. The publication shows that the model is relatively simple to apply and its consistency with the supply and use system makes it an attractive tool for policymakers.
Author: James M. Bickley
Publisher:
ISBN:
Category : Value-added tax
Languages : en
Pages : 58
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Book Description
Author: Gerardo P. Sicat
Publisher:
ISBN:
Category : Value-added tax
Languages : en
Pages : 44
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Book Description
Author: Richard Wadsworth Lindholm
Publisher:
ISBN:
Category : Business & Economics
Languages : en
Pages : 348
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Book Description
Author: Terrance B. Caldewell
Publisher: Nova Publishers
ISBN: 9781604560992
Category : Business & Economics
Languages : en
Pages : 214
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Book Description
Taxes fund the services provided by governments. The goal of tax policy is to design a tax system that produces the desired amount of revenue and balances the minimisation of compliance and efficiency costs with other objectives, such as equity, transparency, and administrability. This new book brings to light new issues and challenges in this field.
