A Uniform Rate on Consumption Taxation Benefits the Poorest: Presentation and Analysis of the International Debate
The proposal to adopt a uniform rate for the taxation on consumption has been criticized because supposedly differentiated rates would favor the poorest. Based on the analysis of the international literature, the article concludes the opposite: differentiated rates are not the best mean of protectin...
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| Tipo de recurso: | artículo |
| Estado: | Versión publicada |
| Fecha de publicación: | 2024 |
| País: | Brasil |
| Institución: | Fundação Getulio Vargas (FGV) |
| Repositorio: | Revista Direito GV |
| Idioma: | portugués inglés |
| OAI Identifier: | oai:ojs.periodicos.fgv.br:article/91357 |
| Acceso en línea: | https://periodicos.fgv.br/revdireitogv/article/view/91357 |
| Access Level: | acceso abierto |
| Palabra clave: | Value-added tax tax justice VAT consumption taxation progressivity Tributación sobre el valor añadido justicia fiscal IVA tributación al consumo progresividad Tributação sobre o valor agregado justiça tributária ICMS tributação sobre o consumo progressividade |
| Sumario: | The proposal to adopt a uniform rate for the taxation on consumption has been criticized because supposedly differentiated rates would favor the poorest. Based on the analysis of the international literature, the article concludes the opposite: differentiated rates are not the best mean of protecting the poorest for four reasons: (i) lower rates affect both the poorest and the richest, who normally consume more than the poorest, in absolute terms, goods with a reduced rate or exempt; (ii) reduced rates foster complexity, creating litigation that impairs the functioning of the system as a whole; (iii) lower rates favor the action of pressure groups; and (iv) rate reductions are not normally or fully passed through to product prices. |
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