Distributional effects of gasoline tax in Brazil

This paper analyzes the distributional impacts of Brazil's gasoline tax by calculating the Suits Index using a rich Consumer Expenditure Survey (POF 2017/2018). Findings indicate that Brazil's gasoline tax places a relatively higher burden on the country's poorest individuals, implying that the tax is regressive. At state-level, the gasoline tax is regressive in 18 of 27 states; progressive in two states; and proportional in the remaining seven states. We also found an inverse relationship between income level and tax progressivity.