The Optimal Commodity Tax System as a Compromise between Two Objectives

2010 ◽  
Author(s):  
Knud J. Munk
Keyword(s):  
Tax System ◽  
Commodity Tax ◽  
Optimal Commodity

On the existence of the optimum commodity tax system

1990 ◽  
Vol 43 (3) ◽  
pp. 339-352
Author(s):  
Masatoshi Yamada
Keyword(s):  
Tax System ◽  
Commodity Tax

scholarly journals Optimal Tax Design and Enforcement with an Informal Sector

2009 ◽  
Vol 1 (1) ◽  
pp. 1-27 ◽  
Author(s):  
Robin Boadway ◽  
Motohiro Sato
Keyword(s):  
Informal Sector ◽  
Production Efficiency ◽  
Intermediate Goods ◽  
Formal Sector ◽  
Optimal Tax ◽  
Commodity Tax ◽  
The Government ◽  
Optimal Commodity ◽  
Tax Design

An optimal commodity tax approach is taken to compare trade taxes and VATs when some commodities are produced informally. Trade taxes apply to all imports and exports, including intermediate goods, while the VAT applies only to sales by the formal sector and imports. The VAT achieves production efficiency within the formal sector, but, unlike trade taxes, cannot indirectly tax profits. Making the size of the informal sector endogenous in each regime is potentially decisive. The ability of the government to change the size of the informal sector through costly enforcement may also tip the balance in favor of the VAT. (JEL E26, H21, H25)

On calculating the optimal commodity tax rate

1985 ◽  
Vol 19 (4) ◽  
pp. 355-358
Author(s):  
Ranjan Ray
Keyword(s):  
Tax Rate ◽  
Commodity Tax ◽  
Optimal Commodity
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