Table 3 Decomposition of the MT index for 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
Tax regime | MT index | Horizontal equity | Vertical equity | Progressivity | Average tax rate |
|---|---|---|---|---|---|
(1) | (2) | (3) | (4) | (5) | (6) |
Before reform | –0.00352 | –0.00133 | –0.0022 | –0.02562 | 0.08571 |
After reform | –0.00318 | –0.00117 | –0.00201 | –0.02506 | 0.08029 |
% of change | 9.70 | 12.00 | 8.60 | 2.20 | 6.30 |