Distorting effects of commodity taxes on the transaction of goods and nonfactor services
Nature
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
Narrower
Strategy
Value
SDG
Metadata
Database
World problems
Type
(E) Emanations of other problems
Subject
Commerce » Merchandise
Commerce » Taxation
Industry » Commodities
Social activity » Services
Societal problems » Distortion
Content quality
Presentable
Language
English
Last update
Oct 4, 2020