1 / 77

Tax Incidence in Thailand

The Questions. Who bears the burden of taxes?Who benefits from government spending?What are the net effects?Who would gain/lose under different possible tax reform packages, and by how much?. May 11, 2011. JH: Tax

chill
Download Presentation

Tax Incidence in Thailand

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

    1. Tax Incidence in Thailand Jonathan Haughton Suffolk University, Boston Jonathan.haughton@suffolk.edu For the World Bank. May 11, 2011

    2. The Questions Who bears the burden of taxes? Who benefits from government spending? What are the net effects? Who would gain/lose under different possible tax reform packages, and by how much? May 11, 2011 JH: Tax & Expenditure Incidence in Peru Page 2

    3. Example 1: Peru: Tax Revenue Central government tax revenue 11.6% of GDP in 2004 Buoyant since 2002 71% of revenue from indirect tax Vat: 19% rate; but yields just 4.9% of GDP Income tax: 3.4% of GDP May 11, 2011 JH: Tax & Expenditure Incidence in Peru Page 3

    4. Example 2: Vietnam Central Government Revenue

    5. Vietnam: Main taxes (% of GDP)

    6. Vietnam: Noteworthy trends Revenue/GDP: 20% to 2000, now 25% VAT: 7% of GDP (at 10% rate!) Trade: from 4% to 2% of GDP, despite explosion of imports All income tax: Peaked at 10% GDP in 2006, but dependent on SOE sector NB: PIT raises 2% of revenue; surprisingly, not rising

    7. Thailand

    8. Measuring Incidence (1) Step 1. Make assumptions about incidence Statutory incidence ? Effective incidence See Table May 11, 2011 JH: Tax & Expenditure Incidence in Peru Page 8

    9. Incidence assumptions VAT: on consumers Excises: on consumers PIT: on earners Business profits: on earners Other taxes: Property transfer; local fees and contributions: on payers. In this study, CIT, trade taxes, natural resource taxes, not included. Incidence covers half of revenue.

    10. Partial equilibrium incidence

More Related