Distributional Implications of the VAT Reform in the Philippines

By David Locke Newhouse, Daria V Zakharova

July 1, 2007

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Format: Chicago

David Locke Newhouse, and Daria V Zakharova. Distributional Implications of the VAT Reform in the Philippines, (USA: International Monetary Fund, 2007) accessed October 6, 2024

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

This paper assesses the distributional impact of the recent VAT reform in the Philippines and evaluates alternative methods to mitigate the effects of the reform on poor households. The reform was progressive and relatively well targeted. To alleviate the impact of the reform on the poor, several mitigating measures were introduced. Although these measures reduced the adverse impact of the VAT reform for all households, a sizable amount of the benefit accrued to high-income households. Targeted transfer schemes have the potential to deliver a much higher percentage of benefits to the poor.

Subject: Consumption, Education, Household consumption, Income, Value-added tax

Keywords: Price, Share, Spending, Tax, VAT, VAT reform, WP

Publication Details

Pages:

28
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2007/153
Stock No:

WPIEA2007153
ISBN:

9781451867176
ISSN:

1018-5941

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