This tool uses AIReF’s VAT micro-simulator and the micro-data from the INE’s Household Budget Survey to find out the degree of targeting of VAT reductions or increases for a wide range of goods and services and their possible combinations. Specifically, it illustrates the heterogeneity of the measures affecting price, with those affecting goods whose consumption is concentrated among low-income households being more targeted and those affecting goods consumed mainly by higher-income households being less targeted.
