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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
  1. (2)=(3)+(4), (4)=(5)×(6)