EVALUACIÓN DE ESCENARIOS POTENCIALES DE DIFERENCIACIÓN DEL IVA PARA ECUADOR

Andrea Bonilla-Bolaños; José Ramirez Alvarez; Nohely Cordova

doi:10.24310/recta.25.1.2024.19857

EVALUACIÓN DE ESCENARIOS POTENCIALES DE DIFERENCIACIÓN DEL IVA PARA ECUADOR

Translated title of the contribution: Evaluating potential VAT differentiation scenarios for Ecuador

Andrea Bonilla-Bolaños, José Ramirez Alvarez, Nohely Cordova

Research output: Contribution to journal › Article › peer-review

Abstract

The Value Added Tax (VAT) provides the highest tax collection in Ecuador. Because of its regressive nature, its increase would cause important changes of households’ income distribution. This research identifies items of consumption expenditure for which a marginal increase in the VAT rate would increase tax collection without affecting the progressivity principle. Marginal reform tools are used: (i) calculation of Gini Elasticities of Net Income to identify the candidate expense items; and (ii) estimation of Kakwani and Reynolds-Smolensky pseudo-elasticities to quantify the effects of marginal changes in terms of vertical equity.

Translated title of the contribution	Evaluating potential VAT differentiation scenarios for Ecuador
Original language	Spanish
Pages (from-to)	1-20
Number of pages	20
Journal	Recta
Volume	25
Issue number	1
DOIs	https://doi.org/10.24310/recta.25.1.2024.19857
State	Published - 2024

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10.24310/recta.25.1.2024.19857

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abstract = "The Value Added Tax (VAT) provides the highest tax collection in Ecuador. Because of its regressive nature, its increase would cause important changes of households{\textquoteright} income distribution. This research identifies items of consumption expenditure for which a marginal increase in the VAT rate would increase tax collection without affecting the progressivity principle. Marginal reform tools are used: (i) calculation of Gini Elasticities of Net Income to identify the candidate expense items; and (ii) estimation of Kakwani and Reynolds-Smolensky pseudo-elasticities to quantify the effects of marginal changes in terms of vertical equity.",

keywords = "Equity, Gini Elasticity of Net Income, Marginal Reform, Sufficiency, Tax Incidence, VAT",

author = "Andrea Bonilla-Bola{\~n}os and \{Ramirez Alvarez\}, Jos{\'e} and Nohely Cordova",

year = "2024",

doi = "10.24310/recta.25.1.2024.19857",

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AU - Bonilla-Bolaños, Andrea

AU - Ramirez Alvarez, José

AU - Cordova, Nohely

PY - 2024

Y1 - 2024

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AB - The Value Added Tax (VAT) provides the highest tax collection in Ecuador. Because of its regressive nature, its increase would cause important changes of households’ income distribution. This research identifies items of consumption expenditure for which a marginal increase in the VAT rate would increase tax collection without affecting the progressivity principle. Marginal reform tools are used: (i) calculation of Gini Elasticities of Net Income to identify the candidate expense items; and (ii) estimation of Kakwani and Reynolds-Smolensky pseudo-elasticities to quantify the effects of marginal changes in terms of vertical equity.

KW - Equity

KW - Gini Elasticity of Net Income

KW - Marginal Reform

KW - Sufficiency

KW - Tax Incidence

KW - VAT

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DO - 10.24310/recta.25.1.2024.19857

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AN - SCOPUS:85207868842

SN - 1575-605X

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IS - 1

ER -

EVALUACIÓN DE ESCENARIOS POTENCIALES DE DIFERENCIACIÓN DEL IVA PARA ECUADOR

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