A Incid\^encia Final dos Tributos Indiretos no Brasil: Estimativa Usando a Matriz de Insumo-Produto 2015

TL;DR

This paper estimates the final incidence of indirect taxes in Brazil using the 2015 input-output matrix, revealing the complex effects of multiple taxes and rates on the economy.

Contribution

It introduces a method that incorporates multisector effects to more accurately estimate the incidence of indirect taxes in Brazil.

Findings

Indirect taxes significantly impact final consumers.

The effective tax rates differ from legal rates due to multisector effects.

The methodology improves understanding of tax burden distribution.

Abstract

Taxes on goods and services account for about 45% of total tax revenue in Brazil. This tax collection results in a highly complex system, with several taxes, different tax bases, and a multiplicity of rates. Moreover, about 43% of taxes on goods fall on inputs. In this context, the effective tax rates can substantially differ from the legal rates. In this study we estimate the final incidence of indirect taxes in Brazil using the 2015 Brazilian input-output matrix and a method that incorporates the multisector effects of the taxation of inputs.