China Finance and Economic Review

Table 2 Redistribution effects of VAT and business tax before and after the reform

From: The effects of China’ s VAT enlargement reform on the income redistribution of urban households

Equity measure	Before the reform			After the reform			% of decline in RE
	Pre-tax	Post-tax	RE	Pre-tax	Post-tax	RE
GE₂	0.2605	0.2666	−0.0061	0.2605	0.2660	−0.0056	8.20
GE₁	0.1951	0.1991	−0.0040	0.1951	0.1987	−0.0036	10.00
GE₀	0.1904	0.1943	−0.0039	0.1904	0.1939	−0.0035	10.30
GE₋₁	0.2535	0.2507	0.0028	0.2535	0.2492	0.0044	57.10
Gini	0.3331	0.3367	−0.0035	0.3331	0.3364	−0.0032	8.60

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