Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/52960
Authors: 
Decoster, André
Verbina, Inna
Year of Publication: 
2003
Series/Report no.: 
WIDER Discussion Papers // World Institute for Development Economics (UNU-WIDER) 2003/58
Abstract: 
The interplay of a differentiated indirect tax structure and the variation in expenditure patterns across households, leads to a possibly unequal distribution of indirect tax liabilities across the population. This paper uses the ninth round of the RLMS survey to assess the distributional consequences of the two major components of the indirect tax system: VAT and excise taxes. The global indirect system can be considered to be progressive overall, according to the Kakwani index. Decomposition into constituent terms shows that this is due not only to a progressive VAT structure, but also to progressive excise taxes. This surprising result is mainly explained by the progressivity of the excise tax on car fuel, but might also be sensitive to peculiarities in the data about alcohol consumption.
Subjects: 
indirect taxes
microsimulation
progressivity
Russia
tax reform
redistribution
JEL: 
D12
D63
H22
H31
Document Type: 
Working Paper

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