It is worth noting that applying the Kakwani index to define progressivity, in certain countries, depending on the distribution of primary income, the reduced VAT rates would be progressive. Reflecting differences in the level of consumption taxes (standard rates at 5% in Japan and about 7% in the United States, but up to 25% for the standard VAT rate in the Nordic countries), Garfinkel et al. ( Adema and Ladaique (2009) also recognise that consumption taxes reduce the real value of consumption which can be financed out of a given level of benefits.