Despite that, Lustig and Melendez (2014) estimate that direct taxes and social contributions are progressive (their share increases by income deciles), however the impact on income inequality is limited (0.2 points of Gini), mainly due to their relatively small size. Direct transfers (except pensions) also contribute to reduce inequality (0.5 points of Gini). Indirect taxes are regressive, but their redistributive impact is limited due to their small size. Lustig and Melendez (2014) show that income inequality before taxes and social benefits in Colombia is similar to Brazil, but taxes, direct transfers and especially in-kind transfers reduce inequality in Brazil on a much larger scale. In Peru, taxes and social spending redistribute as much as in Colombia, but inequality before taxes and social spending is considerably lower. Mexico is an intermediate case, with somewhat lower inequality before taxes and social spending and higher redistribution.