Volume 19, Issue 11 (2011)
J Tax Res 2011, 19(11): 63-84 |
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Aminrashti N, Rafatmilani M. The Effect of the Value Added Taxation (VAT) On Income Distribution in Selected Countries. J Tax Res 2011; 19 (11) :63-84
URL: http://taxjournal.ir/article-1-89-en.html
URL: http://taxjournal.ir/article-1-89-en.html
1- PhD of Economics and Associate Professor at Islamic Azad University, Tehran Central Branch
2- M.A. of Economic Sciences from Islamic Azad University, Tehran Central Branch , mozhgan.milani@gmail.com
2- M.A. of Economic Sciences from Islamic Azad University, Tehran Central Branch , mozhgan.milani@gmail.com
Abstract: (8306 Views)
Because of expending tax basis, value added tax is one of those taxes which carries high income for government. Since this kind of tax is enacted on the basis of expenditure, the rate is of descending sort and it is expected that it put under presser the poor class of the society or this desperate the distribute condition. Since in this research 20 selected countries have been studied on 2000-2005 period and "GINI Coefficient" has been applied as "Inequality Indicator". The analyzing method is based on econometrics technique using "Country Data Panel" accompanying with "EVIEWS" software. Since an equal society is assumed in this research, the model is estimated for 10 high-income and 10 low-income countries. The results illustrate that within low-level income countries, the "GINI Coefficient" increases in a positive correlation with the portion of VAT in the total tax which ultimately results in a greater income inequality. However, in high-level income countries, “GINI Coefficient” decreases while VAT portion of total tax increases resulting in less income disparity.
Type of Study: Research |
Received: 2011/10/30 | Accepted: 2012/01/18 | Published: 2014/03/11
Received: 2011/10/30 | Accepted: 2012/01/18 | Published: 2014/03/11
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