VAT Research Gap
Research Gap
One very crucial aspect of the effects of VAT which has been left unexplored till date (to the best of our knowledge) is the repercussions of the VAT reform on the food consumption and hence the calorie intake of the people below the poverty line. If the imposition of VAT decreases the food consumption of the poor as a result of increased prices, the minimum nutritional requirement that an individual has in order to survive, might not be met. This might have an adverse effect on the health of a person and his/her probability to fall sick rises too. As the popular saying goes, ‘health is wealth’ and an unhealthy person can never contribute to the economic growth and development of a nation. Apart from this, health is human capital
…show more content…
Since VAT is a more neutral and transparent tax system, apart from being a more broad-based tax structure, where tax is levied at multiple stages of production and not just at one particular stage, it might be a boon to the socio-economic prosperity of a nation. There are quite a few evidences in literature which support this view (Charles and Isaac,2014 ; Roy et al. 2006). However, opinion on the same is divided. Ajakaiya (1999), using a general equilibrium model has shown that the imposition of VAT led to a rise in poverty in Nigeria. A study on the distributional impact of implementing VAT has shown that a revenue neutral, uniform rated VAT is regressive in nature (Hossain,2003). Thus, the effect of the VAT system of taxation on the poor is still ambiguous.
By hypothesizing that the implementation of VAT reduces poverty, we have tried to estimate the consequence of the VAT system of taxation on the incidence of poverty across the various states of India post the change in the indirect tax structure in
…show more content…
The data on poverty has been drawn from the Planning Commission Reports on estimates of poverty released by the Government of India. The Planning Commission periodically estimates poverty ratios for the respective years for which the National Sample Survey Office (NSSO) of the Ministry of Statistics and Programme Implementation (MOSPI) conducts large sample surveys on Household Consumption Expenditure. These surveys are conducted on a quinquennial basis and the ones we have utilized in our study are the 66th (July,2009-June,2010) and 68th (July,2011-June,2012) round surveys. The results of these surveys are planned for release under various reports. The 66th round covered 100,957 households and Schedule I of 68th round of survey was canvassed around 119,378 rural and 83,935 urban households.1 The official estimates of poverty incidence used in this exercise are calculated using the Tendulkar methodology of poverty estimation. Further, the data on the State Domestic Product (at constant prices), capital expenditure of each state and the food inflation rates (Base year: 2001) has also been collected from the
Texas Comptroller Case Study
1040 Words | 5 PagesSales tax is income elastic; because of this fact, consumers have a higher tax incidence and carry the burden. From this, it has been evidenced that the tax burden is vertically unequitable and can be seen as unfair to the less fortunate. Sales tax is paid by retailers, which is dependent upon their sales revenue. However, since the demand of consumers is inelastic and can vary based on market and economic conditions, this burden is felt more by lower income individuals and families. However, it is important to note that the tax burden is independent of who physically pays the tax.
Tax Act 1937
1860 Words | 8 PagesThe purpose of this investigation is to determine what the principal cause was for implementing the Marihuana Tax Act of 1937 and analyze what the cause reveals about Americans during the 1930s. The main body of the evidence will investigate the events leading up to the creation of the act and the societal bias’ that influenced the implementation of the tax act, particularly against Mexican immigrants. Evidence will include the Marihuana Tax Act, witness testimonies, and secondary sources such as historical accounts of the time period. The investigation will focus on events that directly impacted the implementation of the tax act from the years 1910-1937. This investigation will give a view into the bias of Americans in the past and can also
How Did Tax Laws Shaped American Society
1014 Words | 5 PagesSince individuals and businesses are required to pay various kinds of taxes, it is important to understand how tax laws shaped American society. America was tax-free for much of its early history; only after the Revolution did we have a government that was cautious on taxation. These laws has influenced our society in many positive ways, but has also had many negative outcomes. One way these laws has shaped American society is through the economic risks that we take which helped our tax preferences be taken accounted for and stand the test of time. It also maximizes opportunity through initiating social mobility and a wider range of institutions.
Bad Food Mark Bittmans Analysis
523 Words | 3 PagesAlthough this is not happening, the benefits clearly outweigh the "damages" that people think will occur. People may argue that increasing the price would be "unfair" to the poor population, which it may seem like at first since maybe all they can afford is the cheap fatty foods. In the long run though, with the more money that is generated from the taxes, the expensive, healthier foods will eventually lower in price, therefore benefitting the poor financially and physically. Other people may "resent" this idea
Summary Of Michael Pollan's Unhappy Meals
565 Words | 3 PagesAccording to Pollan, the focus of society on the nutrients in food has not helped the obesity epidemic in the Western world. According to Pollan, “The industrial food supply was promptly reformulated
The Pros And Cons Of Feeding America
380 Words | 2 PagesWhen prices rise, consumers often move to cheaper, less-nutritious foods, increasing the risks of micronutrient defects and other forms of malnutrition, which can have long-term unfavorable effects on people’s health, development and productivity. Hunger
Essay On Flat Tax
1766 Words | 8 PagesIn this essay, I will show some of the benefits of implementing a single flat income tax. I will also some of the effects the flat tax will have on the lower class, middle class, and the upper class. I will then show the effects of implementing a flat tax on the United States economy. The annual cost of compliance in America is $370 billion.
Rethinking American Poverty Summary
316 Words | 2 PagesIII. A theory in the work is that political and economic structures failed to provide enough decent opportunities and support to the whole economy. IV. The Author does not present any original research, does use sources to come to conclusions on poverty. The author doesn’t mention the methodology used.
Effects Of Income Inequality In The United States
1863 Words | 8 Pages1. Introduction Income inequality has grown significantly during this past decades and this phenomenon continues to increase over the years. This problem is constantly discussed in the daily news all around the world. Several consequences of this increase of inequality between people leads to economic problems such as high unemployment rates, lack of work for young people, fall of demand for certain product. The gap between rich and poor is increasing, the rich are richer and the poor are poorer as a result politicians and economists try to adopt certain policies in order to reduce this gap.
Luxury Tax Inequality In Society
2060 Words | 9 PagesOn the one hand, providing state subsidy might be a good tool for this challenge. In this way relatively poor people in society are helped to increase their welfare and to limit inequality. On the other hand, there is the possibility to decrease inequality by limiting some of the welfare of the relatively rich people in society. This can be done by raising taxes on luxury goods while keeping the tax on other goods the same. However, a sales tax on
Argumentative Essay: The Federal Tax System
147 Words | 1 PagesThe federal tax system is plagued with issues: It doesn 't raise sufficient revenue to back government spending, it is unpredictable, it makes results that are unreasonable, and it impedes monetary productivity. This part examines a few approaches to enhance charges, including making an esteem included duty, expanding natural taxes, improving the corporate expense, treating low-and center pay workers evenhandedly and productively, and guaranteeing suitable tax collection of high-wage family units. A good tax system raises the incomes expected to fund government spending in a way that is as basic, evenhanded, and development well growth as could reasonably be expected. The United States does not have a good tax system.
Thesis Statement On Poverty
791 Words | 4 PagesSome of these measures are lack clothing, shelter, food and transportation. A lack of human capabilities such as skills, physical abilities or self-respect. This article which was focused on income-based poverty measures it also showed the lack of resources available resources to meet those needs. 2. Discussion: This sub-topic relates to the thesis statement in that living in poverty
Tax In Mauritius Essay
987 Words | 4 Pages• Are the taxpayers satisfied with the right set out in the Taxpayers’ charter of the MRA? 1.10 Delimitations Relationship between indirect taxes such as VAT and taxpayers’ right was not included in the study. However, the basic taxpayers’ right identified and how it need to be protected will also apply to relationship with indirect taxes. As the study is mainly concerned with individual income earners and representative of small organization, the Income Tax Act 1995 was referred to in terms of powers conferred to the tax administration and the right to appeal and object of taxpayers.
Marketing Strategy Of Amul Butter
3523 Words | 15 PagesAlso butter is considered to have high source of fat, health conscious people may reduce the consumption which could affect its sales. PEST Analysis Political:Since the budget range is decontrolled, no political effects are envisaged. Economic: • The Increasing per capita income of the whole population is resulting a higher disposable income to the consumer as the purchasing power parity is also rising
More about VAT Research Gap
Texas Comptroller Case Study
1040 Words | 5 PagesTax Act 1937
1860 Words | 8 PagesHow Did Tax Laws Shaped American Society
1014 Words | 5 PagesDbq Essay On The Enlightenment
1801 Words | 8 PagesBad Food Mark Bittmans Analysis
523 Words | 3 PagesSummary Of Michael Pollan's Unhappy Meals
565 Words | 3 PagesThe Pros And Cons Of Feeding America
380 Words | 2 PagesEssay On Flat Tax
1766 Words | 8 PagesRethinking American Poverty Summary
316 Words | 2 PagesEffects Of Income Inequality In The United States
1863 Words | 8 PagesLuxury Tax Inequality In Society
2060 Words | 9 PagesArgumentative Essay: The Federal Tax System
147 Words | 1 PagesThesis Statement On Poverty
791 Words | 4 PagesTax In Mauritius Essay
987 Words | 4 PagesMarketing Strategy Of Amul Butter
3523 Words | 15 Pages