Designing a Progressive VAT

Designing a Progressive VAT
Author :
Publisher : International Monetary Fund
Total Pages : 31
Release :
ISBN-10 : 9798400271830
ISBN-13 :
Rating : 4/5 ( Downloads)

Book Synopsis Designing a Progressive VAT by : Artur Swistak

Download or read book Designing a Progressive VAT written by Artur Swistak and published by International Monetary Fund. This book was released on 2024-04-05 with total page 31 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper presents a novel approach to addressing VAT regressivity, by proposing the adoption of a progressive VAT: a single-rate, broad-base, VAT, whereby tax paid on consumption is re-paid to lower income households in real-time, at the moment of purchase. Such a system can effectively eliminate regressivity, while minimizing the political economy, cash-flow, and welfare stigma obstacles that are often associated with standard welfare transfers used in modern VAT systems. It would also have other significant advantages, particularly in terms of compliance incentives.


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