Food Expenditure and GST in New Zealand

Arbeitspapier

This paper has two main aims. First, the poor targeting of a policy of zero-rating food in a goods and services tax (GST) is illustrated in a simple model where the revenue lost from zero-rating food is instead devoted to a universal transfer payment, with a larger effect on progressivity. Second, the paper investigates the welfare effects on New Zealand households of zero-rating food. The detailed effects, for a range of household types, are then investigated using Household Economic Survey data. Demand responses to consumer price changes are estimated and welfare changes, in terms of equivalent variations, are obtained. Comparisons are made across ‘clusters', consisting of groups of households with similar characteristics. The reform is seen to produce a very small amount of progressivity in the GST, with redistribution from richer households without children to poorer households with children, and older households.

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• ISBN: 978-0-478-42162-0
• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: New Zealand Treasury Working Paper ; No. 14/07

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Fiscal Policies and Behavior of Economic Agents: Household ; Consumer Economics: Theory
• Thema: Umsatzsteuer ; Steuerprogression ; Steuereinnahmen ; Wohlfahrtsanalyse ; Neuseeland

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Ball, Christopher ; Creedy, John ; Ryan, Michael
• Ereignis: Veröffentlichung
• (wer): New Zealand Government, The Treasury
• (wo): Wellington
• (wann): 2014

Weitere Informationen

• Handle: http://hdl.handle.net/10419/205662