Regional evaluation of a tax on the retail sales of certain fuels through a social accounting matrix

Description

The goal of this article is to calculate the cumulative impact of the tax on the retail sales of certain fuels (IVMH, in Spanish initials) and its effects on some fundamental economic variables, on the price indices and on remaining tax collections. The novel aspect of this work is to use as methodology a very simple price model applied to a regional Social Accounting Matrix (SAM) – instead of a input-output table – done for Andalusia where we introduce a new tax. The main results of this article show that the introduction of the IVMH in the regional economy may be provoke marginal variations on economy prices. There is also a global increase of tax collections of 0.057%.

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