Factors influencing the microeconomic and fiscal effects of the reduced VAT on books Cover Image

Factors influencing the microeconomic and fiscal effects of the reduced VAT on books
Factors influencing the microeconomic and fiscal effects of the reduced VAT on books

Author(s): Martin Geško
Subject(s): Micro-Economics, Public Finances, Fiscal Politics / Budgeting
Published by: Masarykova univerzita
Keywords: indirect tax; VAT; microeconomic effects; demand elasticity;
Summary/Abstract: Value added tax as the general tax on consumption has a significant influence on the consumer behaviour and is a significant source of public revenues. Many tax policies in response to the current financial and public finance crisis employ the increase of the VAT rate on previously exempted or tax-favoured goods. On the other hand, in previous years some countries adapted decreased VAT rates on specific goods, e.g. books among others, in order to achieve certain non-economic goals.