A proposal of scenarios to improve the distributive incidence of VAT in Argentina

Una propuesta de escenarios para mejorar la incidencia distributiva del IVA en Argentina

Mariana Dondo ()

Estudios Economicos, 2023, vol. 040 (Nueva Serie), issue 80, 165-189

Abstract: The VAT contributes many resources to the State, but the distribution of its burden is unfair, because it implies greater effort for those with less income. In this article paper we evaluate alternative scenarios of VAT reform in Argentina that seek to obtain better results in poverty and inequality indicators, while maintaining the level of collection. We found that broad tax base schemes, with an 18% rate (lower than the current one) and returns or compensatory transfers focused on lower-income taxpayers, have a more equitable effect than focusing exemptions on goods and services of social interest, with a similar level of collection. The article provides useful empirical evidence to design a VAT with less regressive distributional impact

Keywords: VAT; poverty; inequality; effectiva rate; simulation; tax revenue; IVA; pobreza; desigualdad; tasa efectiva; simulación; recaudación de tributos (search for similar items in EconPapers)
JEL-codes: H22 (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:uns:esteco:v:40:y:2023:i:80:p:165-189

DOI: 10.52292/j.estudecon.2023.3118

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