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Equivalence of the Production and Consumption Methods of Calcuting the Value-Added Tax Base Application in Zambia

Two methods of calculating the value-added tax (VAT) base, using production and consumption data, respectively, have been applied in different countries to estimate VAT revenue. It is not apparent that these methods should produce the same result for a particular country because each method requires...

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Bibliographic Details
Main Author: Pellechio, Anthony
Other Authors: Hill, Catharine
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 1996
Series:IMF Working Papers
Subjects:
Wealth
Private Consumption
Public Finance & Taxation
Taxes
Saving
Government Consumption
General Aggregative Models: Forecasting And Simulation
National Accounts
National Government Expenditures And Related Policies: General
Expenditure
Business Taxes And Subsidies
Consumption; Economics
Expenditures, Public
Consumption
Macroeconomics
Macroeconomics: Consumption
Taxation
Value-added Tax
Public Finance
Spendings Tax
Zambia
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
Description
Summary:Two methods of calculating the value-added tax (VAT) base, using production and consumption data, respectively, have been applied in different countries to estimate VAT revenue. It is not apparent that these methods should produce the same result for a particular country because each method requires different adjustments for exemptions. This paper establishes analytically the equivalence of the two methods. Both methods are applied to Zambia. Given the limitations of data, the two methods produce different results, yielding an estimated range for VAT revenue of 2-3 percent of GDP in 1995. Actual VAT revenue collected fell within this range
Physical Description:22 pages
ISBN:9781451961584

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