Distributional Impacts of Changes in Value Added Tax Rates in the Czech Republic
The paper evaluates the ongoing reform of VAT in the Czech Republic in terms of impacts on individual households. The main objective is to analyse the impact of given changes on individual households. The adopted method is based on the data related to household consumption by individual household quintiles; obtained data are subjected to micro-simulation examining. Results are discussed in terms of vertical tax justice. Results of the analysis reveal that VAT behaves regressively and a sole consolidation of rates at a higher level only increases the regression of this tax in the Czech Republic.
[1] O., Bayer. M─øřen├¡ a odhadov├ín├¡ daňov├¢ch př├¡jm┼». Praha, Vysok├í ┼íkola
ekonomická, 2011, Diplomová práce.
[2] K.-D.Bedau, S. Fahrländer, B. Seidel and D. Teichamnn, "The effect of
the increase in VAT on private households," in Economic Bulletin
(online). 1998, ro─ì. 35, ─ì. 5, s. 15-20 (cit. 2012-06-26). ISSN 0343-754x.
DOI: 10.1007/BF02677369. <
http://www.springerlink.com/index/10.1007/BF02677369>
[3] T. J. Beslay and H. S. Rosen, "Sales Taxes and Prices: An Empirical
Analysis, " in National Tax Journal, 52(2): pp. 157-178.
[4] E. Caspersen and G. Metcalf, "A Value Added Tax Progressive? Annual
Versus Lifetime Incidence Measures,"in National Tax Journal (online).
1994, Vol. 47, pp. 731-746(cit. 2012-06-26). <
http://www.nber.org/papers/w4387.pdf?new_window=1>
[5] ─îS├Ü, Tab. 6c Dom├ícnosti zam─østnanc┼» a dom├ícnosti d┼»chodc┼» bez EA
─ìlen┼» podle ─ìistéh pen─øžn├¡ho př├¡jmu na osobu - kvintily. (online). Praha,
─îesk├¢ statistick├¢ ├║řad, 2011, (cit. 2012-10-20), <
http://www.czso.cz/csu/2012edicniplan.nsf/t/13001FFA95/$File/300112
61.XLS>
[6] Daňov├¢ port├íl pro v┼íechny, V├¢voj sazeb DPH v ─îR. (online), c2010,
(cit. 2012-06-26), <http://www.berne.cz/danova-teorie/vyvoj-sazeb-dphv-
cr></http:>.
[7] S. P. Dresch,A.-L. Lin and D. K. Stout, "Income Distribution:
Differential Incidence of the VAT-CIT Substitution," in DRESCH,
Stephen P, An-loh LIN a David K. STOUT, Substituting a value-added
tax for the corporate income tax: first-round analysis (online).
Cambridge, Mass.: Ballinger Pub. Co., 1977 (cit. 2012-06-26). ISBN 0-
884-10474-5. < http://www.nber.org/books/dres77-1>
[8] M. S. Hossain,"The Equity Impact of the Value-Added Tax in
Bangladesh, " in Staff Papers - International Monetary Fund (online).
1995, (cit. 2012-06-26). Vol. 42, No. 2. <
http://www.jstor.org/stable/3867579>
[9] K. Kub├ítov├í, Daňov├í teorie a politika. Praha, ASPI Publishing, 2003.
[10] G. E. Metcalf, " Life Cycle versus Annual Perspectives on the Incidence
of a Value Added Tax, " in Summers, Ed. by Lawrence H. Tax policy
and the economy 8 (online). Cambridge: Mit Press, 1994 (cit. 2012-06-
26). ISBN 0-262-66091-1. <http://www.nber.org/books/pote94-3>
[11] L. Sekwati and Brothers W. Malema,"Potential Impact Of The Increase
In Vat On Poor Households In Botswana," in International journal of
economics and research (online). February 2011 (cit. 2012-06-26). ISSN
2229-6158.
<http://www.ijeronline.com/documents/volumes/vol2issue1/ijer2011020
105.pdf>
[12] A. Schenk and O. Oldman, Value added tax: a comparative approach.
(Rev. ed.). New York: Cambridge University Press, 2007, xxxiii, 532 p.
ISBN 978-052-1616-560.
[13] B. Slintáková and S. Klazar,"Impact Of Harmonisation On Distribution
Of Vat In The Czech Republic," in Prague economic papers (online).
Prague: University of Economics, 2010 (cit. 2012-06-26). ISSN 1210-
0455. < http://www.vse.cz/polek/download.php?jnl=pep&pdf=368.pdf>
[14] S. Sv├ítkov├í,S. Klazar, B. Slint├íkov├í, and M. Zelen├¢, Zat├¡žen├¡
spotřebn├¡ho ko┼íe dom├ícnost├¡ dan─ømi ze spotřeby v ─îeské republice.
Praha, Eurolex Bohemia, 2007.
[15] A. Van─ìurov├í and L. L├íchov├í, Daňov├¢ systém ─îR 2010. Praha, VOX
a.s., 2010. pp 267
[16] S. D. Younger, D. E. Sahn, S. Haggblade and P. A. Dorosch, "Tax
Incidence in Madagascar: An Analysis Using Household Data, "in the
World Bank Economic Review (online). 1999-05-01, ro─ì. 13, ─ì. 2, s. 303-
331 (cit. 2012-06-26). ISSN 0258-6770. DOI:
10.1093/wber/13.2.303.<http://wber.oxfordjournals.org/cgi/doi/10.1093/
wber/13.2.303>
[1] O., Bayer. M─øřen├¡ a odhadov├ín├¡ daňov├¢ch př├¡jm┼». Praha, Vysok├í ┼íkola
ekonomická, 2011, Diplomová práce.
[2] K.-D.Bedau, S. Fahrländer, B. Seidel and D. Teichamnn, "The effect of
the increase in VAT on private households," in Economic Bulletin
(online). 1998, ro─ì. 35, ─ì. 5, s. 15-20 (cit. 2012-06-26). ISSN 0343-754x.
DOI: 10.1007/BF02677369. <
http://www.springerlink.com/index/10.1007/BF02677369>
[3] T. J. Beslay and H. S. Rosen, "Sales Taxes and Prices: An Empirical
Analysis, " in National Tax Journal, 52(2): pp. 157-178.
[4] E. Caspersen and G. Metcalf, "A Value Added Tax Progressive? Annual
Versus Lifetime Incidence Measures,"in National Tax Journal (online).
1994, Vol. 47, pp. 731-746(cit. 2012-06-26). <
http://www.nber.org/papers/w4387.pdf?new_window=1>
[5] ─îS├Ü, Tab. 6c Dom├ícnosti zam─østnanc┼» a dom├ícnosti d┼»chodc┼» bez EA
─ìlen┼» podle ─ìistéh pen─øžn├¡ho př├¡jmu na osobu - kvintily. (online). Praha,
─îesk├¢ statistick├¢ ├║řad, 2011, (cit. 2012-10-20), <
http://www.czso.cz/csu/2012edicniplan.nsf/t/13001FFA95/$File/300112
61.XLS>
[6] Daňov├¢ port├íl pro v┼íechny, V├¢voj sazeb DPH v ─îR. (online), c2010,
(cit. 2012-06-26), <http://www.berne.cz/danova-teorie/vyvoj-sazeb-dphv-
cr></http:>.
[7] S. P. Dresch,A.-L. Lin and D. K. Stout, "Income Distribution:
Differential Incidence of the VAT-CIT Substitution," in DRESCH,
Stephen P, An-loh LIN a David K. STOUT, Substituting a value-added
tax for the corporate income tax: first-round analysis (online).
Cambridge, Mass.: Ballinger Pub. Co., 1977 (cit. 2012-06-26). ISBN 0-
884-10474-5. < http://www.nber.org/books/dres77-1>
[8] M. S. Hossain,"The Equity Impact of the Value-Added Tax in
Bangladesh, " in Staff Papers - International Monetary Fund (online).
1995, (cit. 2012-06-26). Vol. 42, No. 2. <
http://www.jstor.org/stable/3867579>
[9] K. Kub├ítov├í, Daňov├í teorie a politika. Praha, ASPI Publishing, 2003.
[10] G. E. Metcalf, " Life Cycle versus Annual Perspectives on the Incidence
of a Value Added Tax, " in Summers, Ed. by Lawrence H. Tax policy
and the economy 8 (online). Cambridge: Mit Press, 1994 (cit. 2012-06-
26). ISBN 0-262-66091-1. <http://www.nber.org/books/pote94-3>
[11] L. Sekwati and Brothers W. Malema,"Potential Impact Of The Increase
In Vat On Poor Households In Botswana," in International journal of
economics and research (online). February 2011 (cit. 2012-06-26). ISSN
2229-6158.
<http://www.ijeronline.com/documents/volumes/vol2issue1/ijer2011020
105.pdf>
[12] A. Schenk and O. Oldman, Value added tax: a comparative approach.
(Rev. ed.). New York: Cambridge University Press, 2007, xxxiii, 532 p.
ISBN 978-052-1616-560.
[13] B. Slintáková and S. Klazar,"Impact Of Harmonisation On Distribution
Of Vat In The Czech Republic," in Prague economic papers (online).
Prague: University of Economics, 2010 (cit. 2012-06-26). ISSN 1210-
0455. < http://www.vse.cz/polek/download.php?jnl=pep&pdf=368.pdf>
[14] S. Sv├ítkov├í,S. Klazar, B. Slint├íkov├í, and M. Zelen├¢, Zat├¡žen├¡
spotřebn├¡ho ko┼íe dom├ícnost├¡ dan─ømi ze spotřeby v ─îeské republice.
Praha, Eurolex Bohemia, 2007.
[15] A. Van─ìurov├í and L. L├íchov├í, Daňov├¢ systém ─îR 2010. Praha, VOX
a.s., 2010. pp 267
[16] S. D. Younger, D. E. Sahn, S. Haggblade and P. A. Dorosch, "Tax
Incidence in Madagascar: An Analysis Using Household Data, "in the
World Bank Economic Review (online). 1999-05-01, ro─ì. 13, ─ì. 2, s. 303-
331 (cit. 2012-06-26). ISSN 0258-6770. DOI:
10.1093/wber/13.2.303.<http://wber.oxfordjournals.org/cgi/doi/10.1093/
wber/13.2.303>
@article{"International Journal of Business, Human and Social Sciences:62469", author = "Ondřej Bayer", title = "Distributional Impacts of Changes in Value Added Tax Rates in the Czech Republic", abstract = "The paper evaluates the ongoing reform of VAT in the Czech Republic in terms of impacts on individual households. The main objective is to analyse the impact of given changes on individual households. The adopted method is based on the data related to household consumption by individual household quintiles; obtained data are subjected to micro-simulation examining. Results are discussed in terms of vertical tax justice. Results of the analysis reveal that VAT behaves regressively and a sole consolidation of rates at a higher level only increases the regression of this tax in the Czech Republic.
", keywords = "Consolidation of rates, household quintiles, tax
impact, VAT.", volume = "6", number = "12", pages = "3684-6", }
