This paper tests for horizontal tax competition in the VAT for a sample of Brazilian states in the period 1985-2001. The states have considerable autonomy to set their VAT rates and bases, often using this tax as an industrial policy tool. The empirical findings, based on the estimation of a tax...

This article tests for horizontal tax competition in the value-added tax (VAT) for a sample of Brazilian states in the period 1985-2001. The states have considerable autonomy over the VAT and often use it as an industrial policy tool. The empirical findings, based on the estimation of a tax...