Distorting effects of commodity taxes on the transaction of goods and nonfactor services


In most developing countries commodity taxes account for 50 to 70% of of all tax revenue. Governments often rely heavily on the domestic production taxes that distort the transactions between producers. Succeeding transactions add tax to that already paid previously by producers or distributors. The price of outputs increases and generates differential taxation of consumption.

Broader Problems:
Distortionary tax systems
Trading commodities
Related UN Sustainable Development Goals:
GOAL 12: Responsible Consumption and ProductionGOAL 17: Partnerships to achieve the Goal
Problem Type:
E: Emanations of other problems
Date of last update
04.10.2020 – 22:48 CEST