value added tax
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VAT in developing countries: flawed, but irreplaceable
Informality, compliance costs, and weak administrative capacity all constrain the effectiveness of VAT in lower-income countries. However, it is a crucial source of revenue that is better than the alternatives, so governments should focus on reforms that make the VAT more efficient.
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VAT distortions in India
When thinking about VAT incidence in countries with high registration thresholds it is important to consider the impact on VAT-unregistered firms. Their interaction with the VAT system matters for progressivity and introduces distortionary effects on product quality.
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Raising money for the state: Lessons on reducing tax evasion from Chile and Ecuador
Value-added tax (VAT) can facilitate tax enforcement by generating paper trails on transactions between firms
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Do taxes affect firm-to-firm trade? Evidence from India
Taxes affect which domestic suppliers firms choose to trade with in India, leading to less within-country trade and firm growth
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Rules versus discretion in tax policy
Compared to existing income taxes, a value-added tax limits the tax base to information that can easily be monitored, reducing the role of discretion