Table 3. Marginal contribution of taxes and transfers to inequality.

Fiscal Intervention		Progressivity (Kakwani Index)	Marginal contribution to the Gini index of:
			Disposable Income (0.3686)	Consumable Income (0.3712)	Final Income (0.3432)
Direct Taxes and Contributions	Income Tax	0.2274	0.0018	0.0018	0.0019
	Employee contributions to the health insurance	0.0002	0.0003	0.0002	0.0004
	Employer contributions to the health insurance	0.0455	0.0008	0.0007	0.0009
	Total Direct Taxes and Contributions	0.0855	0.0029	0.0028	0.0032
Direct Transfers	Targeted Subsidy Program	0.4164	0.0527	0.0552	0.0465
	Social Assistance	0.8205	0.0043	0.0045	0.0040
	Semi-cash Transfers (Food)	0.3018	<0.0000	<0.0000	<0.0000
	Total Direct Transfers	0.4384	0.0583	0.0611	0.0516
Indirect Taxes (Sales Taxes)		−0.1363	–	−0.0026	−0.0025
In-kind Transfers	Education Transfers	0.3485	–	–	0.0226
	Education User-fees	0.0682	–	–	0.0018
	Health Transfers	0.4171	–	–	0.0177
	Health User-fees	0.1611	–	–	−0.0075
	Total In-kind Transfers	0.5886	–	–	0.0290

Source: Own calculations using the Iranian household survey (1390 Iranian calendar, equivalent to 2011–12).

Note: The Kakwani index is calculated with respect to the ‘Market Income’.