Comments by Sarah Daway, on The Effect of an Introduction of Retail Sales Tax in China

Abstract

June 01 2018 Comments by Sarah Daway, on The Effect of an Introduction of Retail Sales Tax in China Author and Article Information Online Issn: 1536-0083 Print Issn: 1535-3516 © 2018 by the Asian Economic Panel and the Massachusetts Institute of Technology2018Massachusetts Institute of Technology Asian Economic Papers (2018) 17 (2): 21–22. https://doi.org/10.1162/asep_a_00601 Cite Icon Cite Permissions Share Icon Share Facebook Twitter LinkedIn MailTo Views Icon Views Article contents Figures & tables Video Audio Supplementary Data Peer Review Search Site Citation Comments by Sarah Daway, on The Effect of an Introduction of Retail Sales Tax in China. Asian Economic Papers 2018; 17 (2): 21–22. doi: https://doi.org/10.1162/asep_a_00601 Download citation file: Ris (Zotero) Reference Manager EasyBib Bookends Mendeley Papers EndNote RefWorks BibTex toolbar search Search Dropdown Menu toolbar search search input Search input auto suggest filter your search All ContentAll JournalsAsian Economic Papers Search Advanced Search Sarah Daway: The introduction is still not well-structured/well-motivated and has to be reorganized. It is still unclear why introducing a RST would be more advantageous to China. Is it in terms of ultimately lower administrative costs (after the transitional phase), its anti-consumption bias, something else? This should be more clearly spelled out. Related to the previous comment: The paper should explain more clearly why raising the RST and reducing the VAT results in more capital accumulation. The paper mentions in several places that VAT and RST are equivalent—in what sense, though? VAT and RST can be made equivalent only in terms of the revenues they raise. Otherwise, the RST is essentially a tax on consumption and VAT is a tax on (value-added) production. It is in this sense that raising the RST, which makes consumption relatively more expensive to saving and, ultimately, accumulating capital, would result in higher capital accumulation.... You do not currently have access to this content.