Distributional Implications of the VAT Reform in the Philippines

Newhouse, David; Zakharova, Daria

doi:10.5089/9781451867176.001

Cited by 10 publications

(13 citation statements)

References 4 publications

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“…Projected impacts are even higher for a rise in the VAT rate from 10 to 15 percent. These estimated welfare losses are large compared to results from other studies, including a study conducted in the Philippines by Newhouse and Zakharova (2007) that uses a partial equilibrium model to find welfare losses varying between 2.5 and 2.7 percent. It is worth mentioning that the estimates of welfare losses from the study by Newhouse and Zakharova are unusually low (S. M. Hossain, 1994, 1995, S. Muñoz and S. Cho, 2003, D. Newhouse and D. Zakharova, 2007, P. Roy et al, 2006.…”

Section: Welfare and Equity Impacts Of The Vatmentioning

confidence: 55%

“…At the same time, they show that a change by 5 percentage points would be less so. Similarly, Newhouse and Zakharova (2007) find that the tax reform in the Philippines is progressive (D. Newhouse andD. Zakharova, 2007, N. Salti andJ.…”

Section: Welfare and Equity Impacts Of The Vatmentioning

confidence: 97%

“…In terms of welfare impacts, studies have consistently shown that the introduction of the VAT results in welfare losses when direct impacts are accounted for (N. Gemmell and O. Morrissey, 2003, S. M. Hossain, 1994, S. Muñoz and S. Cho, 2003, D. Newhouse and D. Zakharova, 2007, N. Salti and J. Chabaan, 2008. For example, using Engel curves, quintile ratios and the AIDS demand system, Salti and Chaaban (2008) find consumption losses as large as 11 and 19 percent among the poorest and the richest respectively resulting from an increase of the VAT rate from 10 to 12 percent.…”

Section: Welfare and Equity Impacts Of The Vatmentioning

confidence: 99%

See 2 more Smart Citations

Welfare Impact of Value-Added Tax Reform: The Case of the Democratic Republic of Congo

Adoho¹,

Gansey²

2019

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The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about development issues. An objective of the series is to get the findings out quickly, even if the presentations are less than fully polished. The papers carry the names of the authors and should be cited accordingly. The findings, interpretations, and conclusions expressed in this paper are entirely those of the authors. They do not necessarily represent the views of the International Bank for Reconstruction and Development/World Bank and its affiliated organizations, or those of the Executive Directors of the World Bank or the governments they represent.

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Section: Welfare and Equity Impacts Of The Vatmentioning

confidence: 55%

Section: Welfare and Equity Impacts Of The Vatmentioning

confidence: 97%

Section: Welfare and Equity Impacts Of The Vatmentioning

confidence: 99%

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Welfare Impact of Value-Added Tax Reform: The Case of the Democratic Republic of Congo

Adoho¹,

Gansey²

2019

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“…In addition, authorities announced plans to spend 30% of the incremental revenue receipts from the VAT reform on infrastructure and social services, which could further ameliorate any adverse distributional effects. Newhouse and Zakharova (2007) who assessed the distributional impact of the E-VAT reform in the Philippines concluded that the reform was progressive and relatively well targeted but a sizable amount of the benefit accrued to high-income households. Households in the bottom quintile enjoy only about 15 percent of the benefit from the package of tax cuts and spending increases, while households in the top quintile enjoy about 30% of the benefit.…”

Section: Impact Of E-vat On Philippinesmentioning

confidence: 99%

Goods and Services Tax (GST): A Comparative Study of Select ASEAN Countries

Gupta

2017

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After a decade long struggle, overcoming all the issues acting as roadblocks in its implementation, Goods and Services Tax (GST) has finally been implemented in federal India from 1July 2017. By subsuming majority of indirect taxes and cesses levied at the central and state government levels it has simplified the indirect tax regime in India and has put an end to the complex and cascading nature of the multiple tier indirect taxation. GST has already been implemented by more than 160 countries around the world. Hence it carries rich history of successes and failures. In India, both policy makers and public have a lot of expectations from the GST in terms of resolving loopholes in the pre-existing indirect tax structure. In this context, this paper attempts to study the functioning of VAT/GST of 6 ASEAN countries - Philippines, Indonesia, Singapore, Vietnam, Thailand and Malaysia - and compare it with the Indian GST regime. An attempt has also been made to draw lessons for India from the experience of these countries. India should learn from the pitfalls in administration and application of law in developing countries as well as from the successful administrative strategies of the developed countries like Singapore.

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“…28 In addition, high payroll taxes tend to 27 Peñalosa and Turnovsky (2005) argue that in developing countries with a large informal economy taxing capital more heavily than labor income could be optimal. 28 In practice, VAT is often only mildly regressive, as argued by Moore (2005) for Slovakia, Dalsgaard (2008) for the Czech Republic and Newhouse and Zakharova (2007) for the Philippines. Moreover, given the fact that richer households tend to find it easier to evade taxes on capital than on consumption, increasing taxation of the latter can be progressive.…”

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confidence: 99%

Zero Corporate Income Tax in Moldova: Tax Competition and its Implications for Eastern Europe

Piątkowski

Jarmuzek

2008

IMF Working Papers

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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.Global economic integration intensified tax competition and raised concerns about the resulting "race to the bottom", which could undermine public investment and social spending. The aim of this paper is to test predictions that (i) there is interdependence in CIT rate setting in Eastern Europe and that (ii) the recent CIT cut in Moldova may intensify tax competition in the region. It finds that there is indeed evidence that during 1995-2006 countries in Eastern Europe strategically responded to changes in CIT rates in the region and that Moldovan zero CIT is likely to encourage further cuts in CIT. The paper also discusses implications of tax competition for Eastern Europe and finds that FDI flows will not be much affected, tax revenues are likely to decline, the shift in the composition in tax revenue may increase economic efficiency, but decrease equity. Tax coordination, while difficult politically, could help stem further decline in corporate taxation, but any gains might be modest and not certain to exceed the costs of tax coordination. Without tax coordination, however, it is unclear what exactly could stop corporate taxes from falling further. JEL Classification Numbers: H0; H25; H77 Keywords: Tax competition; Corporate Taxes Authors' E-Mail Address: marcin.piatkowski@pkobp.pl and mjarmuzek@imf.org 1 The paper was written while Marcin Piatkowski, currently chief economist of PKO BP, was with the European Department of the IMF. We would like to thank Engin Dalgic, Alexander Klemm, Tetsuya Konuki, Wojciech Maliszewski, Andrzej Raczko and the reviewers for valuable comments and suggestions. We are also grateful to Saida Mamedova for excellent research assistance.

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Distributional Implications of the VAT Reform in the Philippines

Abstract: This Working Paper should not be reported as representing the views of the IMF.

Cited by 10 publications

References 4 publications

Welfare Impact of Value-Added Tax Reform: The Case of the Democratic Republic of Congo

Welfare Impact of Value-Added Tax Reform: The Case of the Democratic Republic of Congo

Goods and Services Tax (GST): A Comparative Study of Select ASEAN Countries

Zero Corporate Income Tax in Moldova: Tax Competition and its Implications for Eastern Europe

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