Original scientific paper
https://doi.org/10.3935/rsp.v5i2.337
Social Impact of Value Added Tax
Jure Šimović
; Pravni fakultet Sveučilišta u Zagrebu
Abstract
The principle of the social balance of the tax system is one of the most important requirements the tax system of every country is faced with. It means that the tax system itself ought not to be a source of additional social tensions because only under that condition it can be accepted by the majority of citizens. However, value added tax, particularly when it is a singlerate system, distributes the tax burden regressively in relation to the tax payer's income. Since the relative share of consumption in the income decreases when the income increases, value added tax, levied at a single tax rate, affects more the poor that the rich part of the population. In the paper, the author analyses a set of measures that should be taken within in tax and fiscal systems, and the value added tax system, in order to alleviate or to annul the negative effect.
Keywords
Hrčak ID:
29935
URI
Publication date:
1.2.1998.
Visits: 4.131 *