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 nakladatelství
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.

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