Publication:
Colombia’s 2012 Tax Reform: Poverty and Social Impact Analysis

dc.contributor.author World Bank
dc.date.accessioned 2017-10-12T20:42:29Z
dc.date.available 2017-10-12T20:42:29Z
dc.date.issued 2014-11
dc.description.abstract This report summarizes the results of the PSIA and explains the three analyses used to determine the impact of the tax reform. The first analysis integrates data from administrative tax records with household statistics from the Gran Encuesta Integrada de Hogares (GEIH) conducted by the Departamento Administrativo Nacional de Estadística (DANE) to correct for the problem of underrepresentation of high-income households that is typical of household surveys. The second analysis, which is based on consumption data from the Encuesta de Calidad de Vida (ENCV) also conducted by DANE, follows the LATAX micro-simulation technique and focuses on the effect of taxes on income distribution and on government revenues on the assumption that individuals’ purchasing habits remain the same. The third analysis uses a general equilibrium model of the labor market to estimate the impact of the tax reforms on the labor market and on informality. The first analysis shows that the effects of Colombia’s income tax reform serve the intended purpose of reducing income inequality. Results based on the constructed full income distribution, which uses administrative tax records and household survey data, indicate that the Gini coefficient decreases from 0.586 to 0.579. Considering that the average yearly reduction of the Gini coefficient in Latin America over the last 10 years was 0.51 percentage points, the estimated reduction in Colombia’s Gini coefficient is not trivial. These results also demonstrate the importance of using the full income distribution to calculate true inequality in a country. en
dc.identifier http://documents.worldbank.org/curated/en/224891505457246534/Colombia-s-2012-tax-reform-poverty-and-social-impact-analysis
dc.identifier.uri http://hdl.handle.net/10986/28530
dc.language English
dc.language.iso en_US
dc.publisher World Bank, Washington, DC
dc.rights CC BY 3.0 IGO
dc.rights.holder World Bank
dc.rights.uri http://creativecommons.org/licenses/by/3.0/igo
dc.subject TAXATION
dc.subject TAX REFORM
dc.subject DISTRIBUTIONAL IMPACT
dc.subject POVERTY
dc.subject INEQUALITY
dc.subject VAT
dc.subject NEW ALTERNATIVE INCOME TAX
dc.subject LABOR MARKET
dc.title Colombia’s 2012 Tax Reform en
dc.title.subtitle Poverty and Social Impact Analysis en
dc.type Report en
dc.type Rapport fr
dc.type Informe es
dspace.entity.type Publication
okr.date.disclosure 2017-09-14
okr.doctype Economic & Sector Work :: Other Poverty Study
okr.doctype Economic & Sector Work
okr.docurl http://documents.worldbank.org/curated/en/224891505457246534/Colombia-s-2012-tax-reform-poverty-and-social-impact-analysis
okr.identifier.externaldocumentum 090224b084fb1c6f_1_0
okr.identifier.internaldocumentum 27981696
okr.identifier.report 113600
okr.imported true
okr.language.supported en
okr.pdfurl http://documents.worldbank.org/curated/en/224891505457246534/pdf/113600-WP-P113763-PUBLIC-COPSIATaxReform.pdf en
okr.region.administrative Latin America & Caribbean
okr.region.country Colombia
okr.topic Public Sector Development :: Tax Administration
okr.topic Public Sector Development :: Public Sector Economics
okr.topic Macroeconomics and Economic Growth :: Taxation & Subsidies
okr.topic Poverty Reduction :: Inequality
okr.topic Poverty Reduction :: Poverty Assessment
okr.topic Social Development :: Poverty and Social Impact Analysis
okr.unit LCSPP; LCSPR
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