Have VAT rates reached their limit? An empirical note

Kent Matthews, Jean Lloyd-Williams

Research output: Journal PublicationArticlepeer-review

8 Citations (Scopus)


Value-added taxes (VAT) have increased in a number of developed economies in recent years. The shift towards consumption taxes in general and VAT in particular has made it a politically sensitive tax. While it is generally accepted that an expenditure tax such as VAT is less distortionary and more efficient to collect than an income tax, there is increasing concern that VAT rates have reached or are close to their revenue maximizing limit. Empirical evidence is produced to support this view.

Original languageEnglish
Pages (from-to)111-115
Number of pages5
JournalApplied Economics Letters
Issue number2
Publication statusPublished - 2000
Externally publishedYes

ASJC Scopus subject areas

  • Economics and Econometrics


Dive into the research topics of 'Have VAT rates reached their limit? An empirical note'. Together they form a unique fingerprint.

Cite this