Who proposed the value-added tax in 1918?
Georg Wilhelm von Siemens proposed the value-added tax in 1918. He was a German industrialist who designed the system to replace the existing German turnover tax.
Questions about Value-added tax
Short answers, pulled from the story.
When was the modern value-added tax implemented in France?
The modern value-added tax was implemented in France on the 10th of April 1954. Maurice Lauré introduced the system in France's Ivory Coast colony before bringing it to France in 1958.
What did the Neumark Report conclude about the value-added tax in 1962?
The Neumark Report concluded that France's value-added tax model was the simplest and most effective indirect tax system. This conclusion led to the European Economic Community issuing two value-added tax directives in April 1967.
How many countries use the value-added tax as of January 2025?
As of January 2025, 175 of the 193 countries with United Nations membership employ a value-added tax. This includes all members of the Organisation for Economic Co-operation and Development except the United States.
What is the main criticism of the value-added tax regarding its impact on income?
The main criticism of the value-added tax is its regressive nature. This means that the poor pay more as a percentage of their income relative to wealthier individuals due to the higher marginal propensity to consume among the poor.