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GTAP Resources: Frequently Asked Question Details

Subject: Final/Intermediate Demand and Producer Taxes

Question: There are several kinds of taxes included in the GTAP database. In most cases the tax base seems to be quite straight forward. However for several taxes we are uncertain which taxes were used as basis for the data given. Therefore my question:

Is it indeed the case that the commodity taxes on:

1. intermediate usage on domestic products,
2. household consumption on domestic products,
3. investment usage and
4. government usage of domestic products

represent a combination of VAT and e.g. consumption taxes on beer/tobacco? If so, how can we split those?

‘Domestic firm and investment tax’ would that be VAT only or does that include anything else as well?

We understood that ‘ptax’ is a sort of producer tax. What does that exactly include? Excise tax?

Answer: Yes, it is. Note that VAT deductions are netted out from VAT payments, so that VAT recorded on sales for intermediate usage is typically zero.

You cannot split those, without resort to other information sources.

Domestic firm and investment tax includes any tax that creates a wedge between price paid by purchasers and price retained by producers.

ptax, not excise tax, which is a commodity tax, but any non-product indirect tax paid by enterprises. Examples include payroll tax, property taxes, motor vehicle taxes, and business licenses.

Source: Mailing List

Date Added: 1/28/2011