How effective is VAT zero rating as a pro-poor policy?

Type Working Paper
Title How effective is VAT zero rating as a pro-poor policy?
Author(s)
Publication (Day/Month/Year) 2015
URL http://www.econ3x3.org/sites/default/files/articles/Jansen & Calits 2015 VAT zero rating FINAL_0.pdf
Abstract
In most countries with VAT, certain goods and services are zero rated to alleviate the
tax burden on the poor. However, this may not be the most cost-effective way of
helping the poor. We investigate the appropriateness of the products currently zero
rated and the impact of this on the poor, the implications for tax revenue were it to
be removed, and the contribution to poverty relief of zero rating compared to
targeted social transfers.

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