Industrialized goods tax: sectorial burden and distributive aspects

Abstract

This paper analyzed the IPI taxation from the perspective of tax incidence. The study was comprehensive, involving multiple databases. On the production side, the methodology involved calculating the average industry tax rates. Then we proceeded to calculate the distribution of the tax burden among families. Our analysis covers the period from 2001 to 2007 plus 2010 and 2012. One of the important differences of this work was the careful application of tax legislation. The results show the strong concentration of the IPI in some sectors such as beverages, tobacco and vehicles, with decreasing rates over the whole period, more pronunciated after 2010. For families, it was found that the impact of the IPI is relatively low and that the tax is slightly regressive. Also, tax reductions from 2009 increased the regressivity of IPI.