IFS Researcher Ross Warwick discusses the impact of VAT in low and middle income countries

As in many high income countries, developing countries often exempt or apply reduced rates of VAT to food and other goods and services in an effort to limit the impacts of VAT on poorer households' cost of living. But with richer households often consuming far more of these goods in absolute terms, and developing countries expanding their cash transfer and social protection schemes, are there better ways to support poorer households?

In a new video, Ross Warwick, a research economist at the IFS, talks about ongoing research being carried out alongside Commitment to Equity Institute (www.ceqinstitute.org)  and World Bank (www.worldbank.org) researchers, on this issue.

You can see our working paper here.