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https://doi.org/10.1080/1331677X.2021.1980732

Residents’ income distribution effect of business tax replaced with VAT reform—based on CGE model

Changnan Chen
Zhifang Su
Wenjun Shuai


Puni tekst: engleski pdf 1.461 Kb

str. 2793-2808

preuzimanja: 198

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Sažetak

Using the 2012 input-output table of China, this study constructs
a computable general equilibrium model by embedding the
value-added tax (VAT) deduction mechanism into the price model
and analyses the effect of replacing the business tax with the VAT
reform on residents’ income distribution. The study shows that
the VAT reform is generally conducive to residents’ income distribution. Specifically, the VAT reform decreases the indirect tax burden of residents, increases their real income, and narrows down
the relative income gap between urban and rural residents. From
the perspective of differences between the before- and after-tax
Gini coefficients (the MT index), both the pilot VAT reform and
VAT reform improve the residents’ income distribution. The VAT
reform also improves the welfare of households.

Ključne riječi

Business tax replaced with VAT reform; income distribution; the CGE model

Hrčak ID:

302484

URI

https://hrcak.srce.hr/302484

Datum izdavanja:

31.3.2023.

Posjeta: 374 *