Progressive VAT, tax equity and revenue efficiency: a systematic review of recent empirical evidence (2020–2025)

Muquis L.E.; Guerrero M.R.; Malpartida J.D. · Frontiers in Political Science (2026) · DOI: 10.3389/fpos.2026.1908065

Resumen

Despite decades of debate, the empirical evidence on whether progressive VAT can genuinely improve equity without sacrificing revenue remains scattered and inconclusive. This study systematically reviews 20 peer-reviewed articles indexed in Scopus (2020–2025), most of them published in Q1 or Q2 journals, using the PRISMA 2020 protocol. The results suggest that progressive VAT schemes can reduce regressive effects without necessarily compromising revenue efficiency—but outcomes depend critically on informality levels, tax compliance, and consumption structure. The review also uncovers a striking gap: no study within the reviewed corpus has examined progressive VAT at the sectoral level, particularly in private higher education in emerging economies a direction proposed here for future research rather than a conclusion of this review By integrating equity and revenue efficiency into a single analytical framework, this study provides the theoretical foundation for an ongoing empirical research program on progressive VAT design in Latin America. Copyright

Instituciones: Universidad Nacional Agraria de la Selva