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Indirect Taxation in Greece: Evaluation and Possible Reform

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  • Georgia Kaplanoglou
  • David Michael Newbery

Abstract

The paper assesses the distributional and efficiency/disincentive aspects of the Greek indirect tax system, which provides 60% of total tax revenue. The marginal welfare costs of broad commodity groups were computed to identify welfare-improving directions of reform. The disincentive effects were estimated from marginal indirect tax rates using Household Expenditure Survey data. The indirect tax structure is shown to be unnecessarily complicated and inefficient, without achieving any redistributive goals. The UK indirect tax structure was shown to be simpler, more equitable and more efficient to implement and administer when simulated on Greek consumers.

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Bibliographic Info

Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 661.

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Date of creation: 2002
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Handle: RePEc:ces:ceswps:_661

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Related research

Keywords: indirect tax reform; inequality; tax efficiency; disincentive effects; tax simulations;

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References

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Citations

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Cited by:
  1. Fred Schroyen, 2003. "An alternative way to model merit good arguments," UFAE and IAE Working Papers, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC) 595.03, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
  2. Cathal O'Donoghue & Massimo Baldini, 2004. "Modelling the Redistributive Impact of Indirect Taxes in Europe: An Application of EUROMOD," Working Papers, National University of Ireland Galway, Department of Economics 0077, National University of Ireland Galway, Department of Economics, revised 2004.
  3. Jonathan Goyette, 2012. "Optimal tax threshold: the consequences on efficiency of official vs. effective enforcement," Cahiers de recherche, Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke 12-07, Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke.
  4. Schroyen, Fred, 2005. "An alternative way to model merit good arguments," Journal of Public Economics, Elsevier, Elsevier, vol. 89(5-6), pages 957-966, June.
  5. François Bourguignon & Amedeo Spadaro, 2006. "Microsimulation as a Tool for Evaluating Redistribution Policies," Working Papers, ECINEQ, Society for the Study of Economic Inequality 20, ECINEQ, Society for the Study of Economic Inequality.
  6. Georgia Kaplanoglou, 2004. "Household Consumption Patterns, Indirect Tax Structures and Implications for Indirect Tax Harmonisation - A Three Country Perspective," The Economic and Social Review, Economic and Social Studies, Economic and Social Studies, vol. 35(1), pages 83-107.

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