REDUCED VAT RATES IN THE EUROPEAN UNION: An analysis based on optimal tax theory
Independent thesis Basic level (degree of Bachelor), 10 credits / 15 HE creditsStudent thesis
Optimal tax theory describes how governments can most effectively collect tax revenue and achieves equity objectives. This thesis uses optimal tax theory and the Atkinson-Stiglitz theorem in order to analyze the commodity tax structure of the European Union. By categorizing the commodity groups eligible for reduced VAT rates, conclusions are drawn about whether the reduced rates are supported by the theory. Several patterns are found: (1) the European Union often uses reduced rates for policy goals not consistent with theory; (2) the reduced rates for some commodity groups are supported by theory, others are not; (3) several commodity groups can be categorized in different ways leading to inconclusive results.
Place, publisher, year, edition, pages
Optimal tax theory, Atkinson-Stiglitz theorem, commodity tax, VAT, European Union
IdentifiersURN: urn:nbn:se:uu:diva-203580OAI: oai:DiVA.org:uu-203580DiVA: diva2:636960
Bastani, Spencer, Forskare
Ohlsson, Henry, Professor