Macroeconomy/Finance

Almost 80% of taxes levied on goods and services

78.6 per cent of tax collection at the three levels – nation, province and municipalities – is for the production and transaction of goods and services, while the remaining 21.4 per cent comes from taxes linked to income and wealth. The public sector is one of the largest payers of the levies contained in goods and services. Indirectly, the government is affected by the consequences of the system’s regressivity. It is because, by modifying the purchasing power of the lower-income strata, the government has to implement social plans and compensatory subsidies (transfers).

Source: Ámbito

Categories: Macroeconomy/Finance