Tax Incidence in Vietnam
This paper examines the incidence of taxation in Vietnam, using data from the Living Standards
Survey of 1997-98 and an input-output matrix for 1997. The tax system in 1998 was slightly
progressive, taking the equivalent of 7.8% of spending for households in the lowest, and 10.3%
from households in the highest, expenditure quintile. The replacement of the turnover tax by a
VAT in January 1999 made the system marginally more progressive, while the falling
importance of taxes on trade has had a negligible effect on the overall incidence of the tax
system.......