Feedback

HEC-Ecole de gestion de l'Université de Liège
HEC-Ecole de gestion de l'Université de Liège
MASTER THESIS
VIEW 45 | DOWNLOAD 0

The reduced rate of VAT in Luxembourg : Does it help the poor?

Download
Keiffer, Max ULiège
Promotor(s) : Jousten, Alain ULiège
Date of defense : 19-Jun-2017/30-Jun-2017 • Permalink : http://hdl.handle.net/2268.2/2686
Details
Title : The reduced rate of VAT in Luxembourg : Does it help the poor?
Author : Keiffer, Max ULiège
Date of defense  : 19-Jun-2017/30-Jun-2017
Advisor(s) : Jousten, Alain ULiège
Committee's member(s) : Jurion, Bernard ULiège
Flawinne, Xavier ULiège
Language : English
Discipline(s) : Business & economic sciences > Economic systems & public economics
Institution(s) : Université de Liège, Liège, Belgique
Degree: Master en sciences économiques, orientation générale, à finalité spécialisée en Economic Analysis and Public Governance
Faculty: Master thesis of the HEC-Ecole de gestion de l'Université de Liège

Abstract

[en] The thesis analyzes the distributional effect of the reduced VAT rate in Luxembourg on the poor. Its hypothesis states that the use of differentiation in the VAT structure in order to pursue distributional objectives is less effective in Luxembourg due to the well-developed social security and direct tax system. The results of the empirical analysis show that, despite the correct allocating of the reduced VAT rates on the specific goods to help the poor, the small regressivity of the VAT, the decreasing differences in the relative spending on reduced rated goods and the disproportional cost benefit for the rich make the reduced VAT rate less efficient to improve equity. The overall conclusion is as follow: The current VAT system in Luxembourg is primarily a source of income that finances partially the social welfare system. As a result it could help, if at all, the poor only indirectly.


File(s)

Document(s)

File
Access s145530KeifferMax2017.pdf
Description:
Size: 1.68 MB
Format: Adobe PDF

Author

  • Keiffer, Max ULiège Université de Liège > Master sc. éco., or. gén., à fin.

Promotor(s)

Committee's member(s)

  • Total number of views 45
  • Total number of downloads 0










All documents available on MatheO are protected by copyright and subject to the usual rules for fair use.
The University of Liège does not guarantee the scientific quality of these students' works or the accuracy of all the information they contain.