Impact of Harmonization on the Implicit Tax Rate of Consumption
Impact of Harmonization on the Implicit Tax Rate of Consumption
Author(s): Andrea Fehér, Bogdan-Virgil Condea, Daniela HarangusSubject(s): Social Sciences, Economy
Published by: Vysoká škola ekonomická v Praze
Keywords: value added tax; implicit tax rate; budgetary deficit; public debt; econometric modelling
Summary/Abstract: This paper brings to the foreground an indicator rather less used in specialized studies – the implicit tax rate of consumption – as an effective tax rate of consumption. In an empirical analysis, we try to analyse the impact of the main determinants on the implicit tax rate of consumption. The analysis is based on the panel technique in order to show the impact of tax harmonization on consumer taxation at EU27, EU15 and NMS12 levels, testing three hypotheses: (1) the implicit tax rate of consumption is directly influenced by the economic growth rate; (2) the effects of harmonization are more pronounced in the new EU member states; (3) during an economic crisis, the budget deficit and public debt determine changes in the implicit tax rate.
Journal: Prague Economic Papers
- Issue Year: 28/2019
- Issue No: 4
- Page Range: 449-464
- Page Count: 16
- Language: English