<abstract xmlns="http://www.w3.org/1999/xhtml"><p> Consumption taxes have an important place in the tax systems of modern states. They provide a large amount of revenue for the state budget. However, they are generous, but they are very regressive. It is a bad characteristic. The regressivity problem of the tax burden implies that the consumption tax is burdensome for the population with lower income. They pay similar tax rate as people with high income. The aim of this paper is to point to the existence of the problem of regressivity in underdeveloped and developed countries. This paper analyses the possibilities of reducing this problem in order to satisfy the principle of fairness in taxation.</p></abstract>

Consumption taxes have an important place in the tax systems of modern states. They provide a large amount of revenue for the state budget. However, they are generous, but they are very regressive. It is a bad characteristic. The regressivity problem of the tax burden implies that the consumption tax is burdensome for the population with lower income. They pay similar tax rate as people with high income. The aim of this paper is to point to the existence of the problem of regressivity in underdeveloped and developed countries. This paper analyses the possibilities of reducing this problem in order to satisfy the principle of fairness in taxation.

Satisfying the Principle of Fairness in Consumption Tax

University of Niš, Faculty of Economics, Serbia

Economic Themes

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

{"article-title":"Satisfying the Principle of Fairness in Consumption Tax"}

Consumption taxes have an important place in the tax systems of modern states. They provide a large amount of revenue for the state budget. However, they are...

Satisfying the Principle of Fairness in Consumption Tax

Data publikacji: 15 kwi 2016

Zakres stron: 37 - 50

Otrzymano: 03 gru 2014

Przyjęty: 27 mar 2015

DOI: https://doi.org/10.1515/ethemes-2015-0003

Słowa kluczowe
consumption taxes, VAT, regressivity, coefficient distributive, poverty

© 2016

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Satisfying the Principle of Fairness in Consumption Tax

Data publikacji: 15 kwi 2016

Zakres stron: 37 - 50

Otrzymano: 03 gru 2014

Przyjęty: 27 mar 2015

DOI: https://doi.org/10.1515/ethemes-2015-0003

Słowa kluczoweconsumption taxes, VAT, regressivity, coefficient distributive, poverty

© 2016

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Słowa kluczowe
consumption taxes, VAT, regressivity, coefficient distributive, poverty