Indirecte Belastingen

Chapter 6 makes a link between economic theory of the taxation of consumption and the empirical research on the effectiveness and efficiency of indirect taxes. The focus is on Value Added Tax (VAT) and taxation on the consumption of tobacco, alcohol and sugar.
Based on economic literature the impact of VAT, the choice for reduced rates and exemptions on the distribution of income, on competition between suppliers, and on consumption choices is described.
For the taxation on the consumption of tobacco, alcohol and sugar, the economic rationale of this taxation is researched based on the economic theory of Pigou and the theory developed by behavioral economist. This has a consequence for the optimal level of taxation. The Pigouvian tax calculates the level of taxation based on the marginal cost of the externality for society as a whole caused by the consumption of the product. The Cost of Illness-method includes private costs (lose of income and health) for the consumer to influence the rate of taxation.