Determinants of Value-Added Tax Revenues
19 Pages Posted: 16 Apr 2011
Date Written: October 1, 1993
An early cross-country, empirical analysis of value-added tax revenues on a sample of 34 countries estimates a model that can be used to predict revenues in countries contemplating the introduction of the VAT. It also confirms conventional wisdom from theoretical and case studies. The key implication is that for value-added tax to provide superior revenues, it should be levied in a single rate on as broad a base as possible. And tax administration and enforcement must be tough to ensure compliance.
Keywords: value-added tax, VAT, government revenue
JEL Classification: H20, C21, O1
Suggested Citation: Suggested Citation