Work detail

Impact of VAT on income distribution in the Czech Republic

Author: Bc. Josef Pokorný
Year: 2015 - summer
Leaders: doc. Petr Janský Ph.D.
Work type: Bachelors
Language: English
Pages: 48
Awards and prizes:
Abstract: This thesis researches VAT progressiveness in the Czech Republic using data
from the Household Budget Survey. Special attention is given to differences
between the life-time and annual incidence perspectives because their disparity
is more than crucial. Therefore, an empirical analysis uses both of the
two perspectives. Net annual income is used for ranking households in the
annual perspective and life-time net income is used for the same purpose
in the life-time setting. The life-time income is predicted from age–income
profiles, which were estimated with econometric methods. Results confirm
theoretical hypothesis that VAT is more regressive in the annual incidence
analysis. Moreover, analysis of a time period of 16 years provides information
about development of VAT burden, which grows in time.




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