DP9320 Efficiency and Equity Effects of Taxing the Financial Sector: Lessons from a CGE Model for Belgium
|Author(s):||Omar Chisari, Antonio Estache, Gaëtan Nicodème|
|Publication Date:||January 2013|
|Keyword(s):||Belgium, financial sector, modeling, sales tax, taxation, VAT|
|JEL(s):||H20, H25, H30, H87|
|Programme Areas:||Public Economics|
|Link to this Page:||cepr.org/active/publications/discussion_papers/dp.php?dpno=9320|
This paper assesses the effects of applying VAT or a sales tax on (intermediate or final) sales of the financial sector. It uses a CGE Model calibrated for a small open economy. It highlights the differentiated sectoral and redistributional effects of these taxes and shows the importance of the financial openness of the economy on these results.