The Equity Impact of the Value-Added Tax in Bangladesh
October 1, 1994
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Summary
This paper investigates the income distributional implications of different value-added tax (VAT) schemes in Bangladesh. The results indicate that a revenue-neutral uniform VAT is regressive in its impact on the income of different households. This paper explores an alternative policy package, consisting of a basic rate of VAT with exemptions for certain commodity groups, chosen on the basis of their distributional characteristics. The welfare consequences of the alternative package are found to be superior to those of the uniform VAT.
Subject: Agricultural commodities, Commodities, Consumption taxes, Excises, Expenditure, Taxes, Value-added tax
Keywords: Agricultural commodities, commodity group, Consumption taxes, Eastern Europe, group i. see text, indirect tax, shadow consumption tax measure, uniform VAT, Value-added tax, VAT scheme, VAT system, WP, zero rating
Pages:
24
Volume:
1994
DOI:
Issue:
125
Series:
Working Paper No. 1994/125
Stock No:
WPIEA1251994
ISBN:
9781451854770
ISSN:
1018-5941
Notes
Also published in Staff Papers, Vol. 42, No. 2, June 1995.
