Impact of Value Added Tax on Poverty in Sri Lanka

Show simple item record

dc.contributor.author N.P.R. Deyshappriya
dc.date.accessioned 2019-01-03T03:22:48Z
dc.date.available 2019-01-03T03:22:48Z
dc.date.issued 2018
dc.identifier.citation Deyshappriya N.P.R., (2018), Impact of Value Added Tax on Poverty in Sri Lanka, Journal of Management and Tourism Research, Vol I Issue I, pp.57-78, en_US
dc.identifier.uri http://www.erepo.lib.uwu.ac.lk//handle/123456789/9
dc.description.abstract This paper examines the impact of Value Added Tax (VAT) on poverty in Sri Lanka, by considering the amount of VAT paid by the household on the consumption of food items. The study based on Household Income and Expenditure Survey (HIES) data of Sri Lanka in 2012/13 and Ordered Probit model was applied for empirical estimation. The results confirm that, despite VAT contributes to national tax revenue significantly, it essentially increases the probability of being extreme poor, poor and vulnerable non-poor by 0.0061%, 0.4942% and 1.4760% respectively, while reducing the probability of being non-poor by 1.9764%. Apart from that, the recent hike in VAT rate of Sri Lanka from 11% to 15% increases probabilities of being extreme poor, poor and vulnerable non-poor by 0.017%, 1.39% and 4.16% respectively, while decreasing the probability of being non-poor by 5.57%. Thus, the study recommends to rationalize and continue VAT exemptions, introduce a twin VAT rate for essential and luxury goods and services along with a gradual shift from indirect to direct taxes in order to lessen VAT burden on lower income groups while ensuring higher tax revenue for the government. en_US
dc.language.iso en en_US
dc.publisher Faculty of Management, Uva Wellassa University en_US
dc.subject Value Added Tax en_US
dc.subject Poverty en_US
dc.subject Indirect Taxes en_US
dc.subject Headcount Index en_US
dc.subject Tax Revenue en_US
dc.title Impact of Value Added Tax on Poverty in Sri Lanka en_US
dc.type Article en_US


Files in this item

This item appears in the following Collection(s)

Show simple item record

Search UWU eRepository


Browse

My Account