Which of our Taxes Should be Flat-rate Tax? – Tax Structure Diagnosis: VAT and PIT

András Giday

Public Finance Quarterly, 2017, vol. 62, issue 2, 127-149

Abstract: The article seeks to find an answer to how sharply taxation principles contrasted with practice in the case of VAT and PIT for the last 18 years in Hungary. After a comparison with historical and nearby countries, it comes to the conclusion that there was a role change of sorts occurring in our case. A (near) flat-rate system was used where a progressive system (VAT) would have been more efficient and an over-complicated version of progressive taxation was enforced until 2009 instead of a clear, flat-rate system which would have also been able to fulfil the task in question (PIT). There was a change to one of the tax categories in 2012 (PIT). There are signs indicating that there may also hope of a major adjustment for the other tax category as well.

Keywords: taxation; value added tax (VAT); personal income tax (PIT) (search for similar items in EconPapers)
JEL-codes: H20 H24 H26 (search for similar items in EconPapers)
Date: 2017
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Persistent link: https://EconPapers.repec.org/RePEc:pfq:journl:v:62:y:2017:i:2:p:127-149

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