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Are Indirect Taxes Regressive?

Geoff Riley

3rd August 2022

The broad answer in the UK is yes according to new data published for 2021.

Indirect taxes are taxes on spending on goods and services. Data from the UK for 2021 finds that richer households pay a smaller percentage of disposable income on indirect taxes (9%) contrasted with the poorest fifth (23%).

Are Indirect Taxes Regressive?

Geoff Riley

Geoff Riley FRSA has been teaching Economics for over thirty years. He has over twenty years experience as Head of Economics at leading schools. He writes extensively and is a contributor and presenter on CPD conferences in the UK and overseas.

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