Who pays taxes on fuels and public transport services in the Czech Republic? Ex post and ex ante measurement
Abstract
We measure tax progressivity of several taxes ex post by the Suits and newly developed Jinonice Index over the last 16 years in the Czech Republic. Then, we use a micro-simulation model and the results from a properly estimated household demand system to analyse the distributional impacts of fuel taxation and of taxation on public transport services.
We conclude that although higher fuel taxation as analysed in this paper increases household expenditures and reduces welfare by 0.7% and 1.5% of total expenditures on average, this effect on income distribution and tax progressivity is very small. Both of the impacts on household expenditures and welfare are distributed evenly across income deciles, while these impacts vary more if we examine tax incidence in the household segments defined according to family status and size of residence.