AN ANALYSIS OF CONSUMPTION TAXES REGRESSIVE EFFECTS
Abstract
Indirect taxes such as value added tax (VAT), excises and duties have big significance for every country. With their assistance, countries can collect enough funds for financing everyday social needs. The share of consumption tax revenues in total tax revenues is high, because consumption taxes are applied to many products and services and they are resistant to tax evasion. Although they have many positive characteristics they are also very regressive. Low-income households give higher amount of money for basic foodstuff than high-income households. Every new increase of prices can make financial condition worse for poor households.
The aim of paper is to point out on regressive side of consumption taxes. Also, some measures for reducing negative effects of consumption taxes will be presented. These measures can additionally help in reducing poverty rate, which is one of the biggest problems for many countries.Keywords
Full Text:
PDFReferences
Аrsić, М. & Аltiparmakov, N. (2012). Equity Aspects of VAT in Serbia. Belgrade: Fiscal Council – Republic of Serbia.
Бејаковић, П. (2012). Повијесни развој теорије о праведности опорезивања [Historical Development of Equity Theory in Taxation], Порезни вијесник, 1, 93–100.
Блажић, Х. (2010). Дистрибутивни учинак ПДВ-а: Успоредна анализа [Distributional Effect of VAT: Comparative Analysis], Ријека: Економски факултет.
Capersen, E & Metcalf, G. (1994). Is A Value Added Tax Regressive? Annual Versus Lifetime Incidence Measures. National Tax Journal, 47(4), 731–746.
Циндори, С. & Погачић, Л. (2010). Проблематика утврђивања броја и висине стопа пореза на додану вриједност [The Issue of Determining the Number and the Rate of VAT]. Економска мисао и пракса, 2, 227–249.
Copenhagen Economics. (2007). Study on Reduced VAT Applied to Goods and Services in the Memeber States of European Union. Copenhagen: Economics Institute.
Creedy, J. (1998). Are Consumption Taxes Regressive? The Australian Economic Review, 31(2), 107–116.
Decoster, A., Loughrey, J., Odonoghue, C & Verwerft, W. (2010). How Regressive Are Indirect Taxes? A Microsimulation Analysis of Five European Countries. Journal of Policy Analysis and Management, 29(2), 326–350.
Ђорђевић, М. (2014). Немогућности повећања прихода од пореза на потрошњу у пореском систему Србије [Impossibilites of Revenue Increase From Consumption Taxes in Republic of Serbia]. Теме, 3, 1155–1171.
Ђуровић-Тодоровић, Ј. & Ђорђевић, М. (2013). Порези на потрошњу [Consumption Taxes]. Ниш: Економски факултет.
Jaime Acosta, M. (2011). Tax – Benefit Incidence of Value Added Taxon Food and Medicine to Fund Progressive Social Expenditure. ECINEQ WP, 194, 1–23.
Шкарица, М. (2009). Реални оквири регресивности хрватског пореза на додану вриједност [Real Regression Frames of the Croatian VAT]. Економска мисао и пракса, 2, 259–278.
Шваљек, С. (2011). Учинак укидања нулте стопе ПДВ-а на неједнакост и сиромаштво [The Effect of the Zero VAT Rate Abolition on Inequality and Poverty]. Загреб: Економски институт.
Warren, N. (2008). A Review of Studies on Distributional Impact of Consumption Taxes in OECD countries. Paris: OECD.
Used web sites:
http://ec.europa.eu/taxtrends_2014
http://www.mfin.gov.rs/UserFiles/File/biltenjavnefinansije/bilten-113-web.pdf.
DOI: https://doi.org/10.22190/TEME1604399D
Refbacks
- There are currently no refbacks.
© University of Niš, Serbia
Creative Commons licence CC BY-NC-ND
Print ISSN: 0353-7919
Online ISSN: 1820-7804