The Mexican Value-Added Tax (VAT) : Characteristics, Evolution, and Methodology for Calculating the Base

Author/Editor:

Carlos A. Aguirre ; Parthasarathi Shome

Publication Date:

March 1, 1987

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

The value-added tax (VAT) is often a major component of national fiscal structures. While its effects on allocative efficiency, inflation, income distribution, and tax administration have been addressed, little work, exists on the theoretical base of a VAT, given its structure. This is essential for knowing how much of the base is actually taxed. Using Mexican national accounts and input-output tables, this paper develops a methodology for calculating the theoretical base of the Mexican VAT for 1980 and 1983 (two years whose individual VAT structures were considerably different). The method is applicable to other VAT systems as well.

Series:

Working Paper No. 87/21

Subject:

English

Publication Date:

March 1, 1987

ISBN/ISSN:

9781451921328/1018-5941

Stock No:

WPIEA0211987

Price:

$10.00 (Academic Rate:$10.00)

Format:

Paper

Pages:

42

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