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dc.contributor.authorSivashankar, P.
dc.contributor.authorRathnayake, RMPS
dc.contributor.authorJayasinghe, Maneka
dc.contributor.authorSmith, Christine
dc.contributor.editorRohde, Nicholas
dc.contributor.editorNaranpanawa, Athula
dc.date.accessioned2020-01-16T07:51:19Z
dc.date.available2020-01-16T07:51:19Z
dc.date.issued2017
dc.identifier.issn1837-7750
dc.identifier.otherRePEc:gri:epaper:economics:201704
dc.identifier.urihttp://hdl.handle.net/10072/390483
dc.description.abstractTax income plays an integral part in the generation of government revenue. Nevertheless, an increase in tax rates, more specifically those of the consumption tax such as Value Added Tax (VAT) can have an adverse impact on the welfare of households, particularly in developing countries with a higher proportion of poor households. This paper investigates the extent to which recent changes in the VAT rate and the list of VAT exempted goods in Sri Lanka affect the level of inequality in the country, with a particular attention given to an investigation of the progressivity (or the regressivity) of the adjusted VAT scheme. Using the Household Income and Expenditure Survey (HIES) data for 2012/13, the Gini coefficient and the Theil index are estimated to analyse the impact of VAT revisions on inequality. The Kakwani progressivity index is estimated to investigate the progressive/regressive nature of the VAT in Sri Lanka. The results reveal that the recent VAT revisions do not have an adverse impact on the level of inequality and, despite these revisions, the VAT remains progressive in the context of Sri Lanka. This is because the VAT continues to exempt food items, on which the poorest households spend a large proportion of their income. The findings of this study provide important policy insights on the impact of consumption tax revisions in the context of developing countries.
dc.format.extent26 pages
dc.languageEnglish
dc.publisherGriffith University
dc.publisher.placeBrisbane, Australia
dc.relation.ispartofpagefrom1
dc.relation.ispartofpageto26
dc.subject.keywordsH24 - Personal Income and Other Nonbusiness Taxes and Subsidies; includes inheritance and gift taxes
dc.subject.keywordsH22 - Taxation and Subsidies: Incidence
dc.subject.keywordsH31 - Fiscal Policies and Behavior of Economic Agents: Household
dc.subject.keywordsD31 - Personal Income, Wealth, and Their Distributions
dc.subject.keywordsC18 - Methodological Issues: General
dc.subject.keywordsInequality
dc.subject.keywordsValue Added Tax
dc.subject.keywordsTax incidence
dc.subject.keywordsKakwani index
dc.subject.keywordsGini coefficient
dc.title2017-04: Incidence of value added taxation on inequality: Evidence from Sri Lanka (Working paper)
dc.typeReport
dc.type.descriptionDiscussion Paper
gro.facultyGriffith Business School
gro.description.notepublicEconomics and Business Statistics
gro.rights.copyrightCopyright © 2010 by author(s). No part of this paper may be reproduced in any form, or stored in a retrieval system, without prior permission of the author(s).
gro.date.issued2017
gro.hasfulltextFull Text
gro.griffith.authorJayasinghe Mudiyan Selage, Maneka S.
gro.griffith.authorSmith, Christine A.


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