The Distributional Effects of Value Added Tax in Ireland
AbstractIn this paper we examine the distributional effects of Value Added Tax (VAT) in Ireland. Using the 2004/2005 Household Budget Survey, we assess the amount of VAT that households pay as a proportion of weekly disposable income. We measure VAT payments by equivalised income decile, households of different composition and different household sizes. The current system is highly regressive. With the use of a micro-simulation model we also estimate the impact of changing the VAT rate on certain groups of items and the associated change in revenue. We also consider how the imposition of a flat rate across all goods and services would affect households in different categories. The Irish Government has recently announced that it proposes to increase the standard rate of VAT to 22 per cent in 2013 and to 23 per cent in 2014. We examine the distributional implications of such increases. The general pattern of results shows that those hardest hit are households in the first income decile, households in rural areas, 6 person households and households containing a single adult with children.
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Bibliographic InfoArticle provided by Economic and Social Studies in its journal Economic and Social Review.
Volume (Year): 42 (2011)
Issue (Month): 2 ()
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Web page: http://www.esr.ie
Other versions of this item:
- Leahy, Eimear & Lyons, Seán & Tol, Richard S. J., 2010. "The Distributional Effects of Value Added Tax in Ireland," Papers WP366, Economic and Social Research Institute (ESRI).
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Callan, Tim & Keane, Claire & Walsh, John R., 2009.
"What Role for Property Taxes in Ireland?,"
WP322, Economic and Social Research Institute (ESRI).
- Tim Callan & Sean Lyons & Sue Scott & Richard S. J. Tol & Stefano Verde, 2008.
"The Distributional Implications of a Carbon Tax in Ireland,"
WP250, Economic and Social Research Institute (ESRI).
- Callan, Tim & Lyons, Sean & Scott, Susan & Tol, Richard S.J. & Verde, Stefano, 2009. "The distributional implications of a carbon tax in Ireland," Energy Policy, Elsevier, vol. 37(2), pages 407-412, February.
- Verde, Stefano & Tol, Richard S. J., 2009. "The Distributional Impact of a Carbon Tax in Ireland," The Economic and Social Review, Economic and Social Studies, vol. 40(3), pages 317â338.
- Richard S. J. Tol & Tim Callan & Thomas Conefrey & John FitzGerald & Seán Lyons & Laura Malaguzzi Valeri & Susan Scott, 2008. "A Carbon Tax for Ireland," Papers WP246, Economic and Social Research Institute (ESRI).
Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:
- Who pays tax in Ireland? The little quiz revisited
by Ronan Lyons in Ronan Lyons on 2012-04-10 11:52:24
- Claudio A Agostini & Marcela Perticara & Javiera Selman, 2012.
"Una Propuesta de Crédito Tributario al Ingreso para Chile,"
wp_021, Adolfo Ibáñez University, School of Government.
- Agostini, Claudio A. & Selman, Javiera & Perticará, Marcela, 2013. "Una propuesta de crédito tributario al ingreso para Chile," Journal, Centro de Estudios Públicos, vol. 0(129), pages 49-104.
- Claudio Agostini & Javiera Selman & Marcela Perticara, 2012. "Una Propuesta de Crédito Tributario al Ingreso para Chile," ILADES-Georgetown University Working Papers inv282, Ilades-Georgetown University, Universidad Alberto Hurtado/School of Economics and Bussines.
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- Wasiu Adekunle Are, 2012. "Poverty-Reducing Directions of Indirect Marginal Tax Reforms in Ireland," Working Papers 201230, School Of Economics, University College Dublin.
- Callan, Tim & Keane, Claire & Savage, Michael & Walsh, John R., 2013. "Distributional Impact of Tax, Welfare and Public Service Pay Policies: Budget 2014 and Budgets 2009-2014," Quarterly Economic Commentary: Special Articles, Economic and Social Research Institute (ESRI).
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