Do Small Value-Added Tax Rate Decreases on Groceries Imply Lower Prices for Consumers?

2017 ◽  
Vol 56 (1) ◽  
pp. 81-98
Author(s):  
Arkadiusz Bernal
Keyword(s):  
Value Added ◽  
Value Added Tax ◽  
Tax Rate

The Impact of the Value-Added Tax Rate on the Entrepreneurial Behavior Model (On the Example of Palm Oil Importers)

2020 ◽  
pp. 181-197
Author(s):  
Anna V. Lozhnikova ◽  
◽  
Aleksandr L. Bogdanov ◽  
Tatiana G. Vayderova ◽  
Larisa N. Spivakova ◽  
...  
Keyword(s):  
Palm Oil ◽  
Chemical Industry ◽  
Food Production ◽  
Food Industry ◽  
Value Added ◽  
Entrepreneurial Behavior ◽  
Value Added Tax ◽  
Dairy Food ◽  
Tax Rate ◽  
The Impact

The article discusses the problem of the reducing life quality of Russians in the new conditions of the market economy. The Russian phenomenon of the use of “palm oil” as a priority raw material in food production is analyzed against the decrease in its use in the EU countriesand against the expansion of the daily diet of the Chinese due to increased dairy food consumption. Opposing points of view of key industry associations (the Dairy Union of Russia and the Fat and Oil Union of Russia) have been identified and are presented in the context of palm oil use in dairy food production. The results of a statistical study of the demand for palm oil from Russian importers against the background of an increase in the value-added tax rate from 10 to 20% in October 2019 are presented. The data of customs statistics on palm oil imports were analyzed in the context of countries of origin, nine codes of the commodity nomenclature of foreign economic activity, months and years within the five-year period of 2016–2020, as well as in the context of the importing regions of Russia. The results of statistical processing of data by the Federal Customs Service revealed no effect of the sharp increase in the VAT rate on the volume of palm oil imports. The analysis of foreign statistics revealed a significant presence of actors in the chemical industry among transnational companies that are the largest consumers of palm oil. The model of entrepreneurial behavior based on consumption in palm oil production, formed and widely spread in the Russian food industry market, is criticized. 98% of palm oil and its fractions imported into Russia goes to the needs of food industry enterprises, and the authors consider that the foreign ownership of these enterprises plays an important role. In the authors’ opinion, in many respects, the latter fact determined our country’s ranking first in the food chemistry sector in the distribution of published patent applications by technology field for the top 10 origins in 2014–2016. In this respect, Russia is far ahead of China, the USA, Japan, South Korea, Germany, the UK,France, and Switzerland. In China, systematic research is being carried out on the ratio of palm oil use in the food (primarily, instant noodles, other fast food) and non-food (chemical industry, including cosmetics production) sectors.

scholarly journals ENTERPRISE TAX SECURITY: MANAGING BUSINESS WITHOUT CONSEQUENCES

2019 ◽  
Vol 7 (3) ◽  
pp. 16-20
Author(s):  
Екатерина Лебедева ◽  
Ekaterina Lebedeva
Keyword(s):  
Income Tax ◽  
Value Added ◽  
Negative Consequences ◽  
Value Added Tax ◽  
Tax Rate ◽  
Regulatory Authorities ◽  
Tax Regimes ◽  
Tax Benefits

The search for optimization of taxation of commercial enterprises often leads to the choice of illegal schemes of evasion of value added tax and income tax. For example, the choice of the scheme of splitting business in order to understate income by distributing them to artificially created organizations, transferred to special tax regimes, which leads to the receipt of an unreasonable tax benefit by the enterprise in the form of a reduced tax rate and VAT exemption. This article formulates the main methods of proving the unjustified receipt of tax benefits by the regulatory authorities and the possible negative consequences of such tax optimization for the enterprise.

scholarly journals SCIENTIFIC AND APPLIED BASES OF REDISTRIBUTION THE VALUE ADDED IN INTEGRATED COMMODITY MARKET (AT THE EXAMPLE OF BREAD MARKET OF UKRAINE)

2017 ◽  
Vol 19 (3(65)) ◽  
pp. 118-126
Author(s):  
O.V. Nikishyna
Keyword(s):  
Value Added ◽  
Added Value ◽  
Commodity Market ◽  
Value Added Tax ◽  
Economic Interests ◽  
Production Sector ◽  
Tax Rate ◽  
Methodical Approach ◽  
Reproduction Process ◽  
Financial Interests

In the article author developed of theory circulation of sectoral value added in integrated commodity market, which distinguishes two stages or processes of its movement: process of formation and process of use value added. Determined the internal and external contradictions of economic interests of participants in reproduction process according to the stages of value added movement in market system. The emphasis is on external contradictions of financial interests the subjects of various sectors of integrated commodity market, which in practice are manifested in migration (cross-sectoral redistribution) of unproductive value added component usually from the production to the trading sector. Fiscal redistribution of added value associated with external contradictions between the economic interests of state and market subjects.In practice, to determine deformations in the processes of formation and use of value added in certain commodity markets it is necessary to use a reproduction methodical approach and build a cross-sectoral balance of key indicators of market efficiency. The analysis on example of bread market of Ukraine showed the presence of deformations in fiscal use of value added of production sector, which for a minimum profitability of products (4,1 %) has the highest among sectors the level of taxcapacity of value added (0,34 points). The expediency of implementation is substantiated of reduced rates of value added tax for the sale of bread and bakery products in Ukraine in order to balance the volumes of fiscal and reproduction use of value added in production sector of integrated bread market. On the basis of reproduction methodical approach impact assessment was conducted of this regulatory measure on indicators of the efficiency of bread market. According to calculations, a 1 % reduction in value added tax rate will contribute to the growth of value added by 13,23 million UAH. (by 0,82 %), its share in production � by 0,11 %, the profitability of products � by 0,19 %, while the reduction in taxes will be 2,4%. Such a calculation allows you to determine various options for reducing fiscal load and choose the best scenario in terms of harmonization of economic interests state, bakery enterprises and population.

scholarly journals Value Added Tax in the Aspect of Forming the Enterprise Accounting Policy

2020 ◽  
Vol 23 (1) ◽  
pp. 120-124
Author(s):  
Olena Matros ◽  
◽  
Liudmyla Melnyk ◽  
Svitlana Mykhailovyna ◽  
◽  
...  
Keyword(s):  
Tax Policy ◽  
Financial Risk ◽  
Value Added ◽  
Tax Burden ◽  
Tax Credit ◽  
Value Added Tax ◽  
Tax Rate ◽  
Tax Legislation ◽  
Business Entities ◽  
Accounting Policy

Introduction. Currently, indirect taxes play a crucial role in shaping the state’s Tax Policy and creating the legal basis for a market economy. In their composition; the value-added tax acts as one of the regulators of the redistribution of public goods and one of the main and stable sources of income to the budget; as well as a way to distribute the tax burden, which allows maintaining the economic and legal equality of taxpayers. Purpose. The aim of the research is to identify possible directions for improving the process of managing value added tax in terms of the forming the enterprise accounting policy. Results. The research has identified a number of problems on the chosen topic, including: the problem of practical application of the principle of undisputed tax credit and non-execution of court decisions; lack of predictability of changes in tax legislation; uncertainty of tax risks and possible measures to prevent them. Based on the outlined problems, opportunities have been assessed and the feasibility of reducing the tax burden on business entities under VAT has been determined. The significance of tax planning has been determined – it allows you to provide for the size of the tax obligation to be paid and control the correctness of its accrual. If new business conditions arise, planning allows you to analyze tax factors and take them into account in the process of implementing tax policy. Conclusions. The theory of taxation defines the essence and content of the tax policy of the enterprise in terms of value added tax; tax risk zones related to VAT payment have been investigated; the concept of tax risk as a special type of financial risk characterizing the possibility of unforeseen financial losses (collection of tax arrears; penalties for late payment of tax; collection of penalties; non-reimbursement of VAT at zero tax rate; inability to use VAT tax credit) related to changes in tax legislation or is the result of taxpayer activity or actions of tax authorities; proposed classification of types of tax risks by VAT depending on the reasons for their occurrence and proposed means of preventing risks associated with the calculation and payment of VAT.

scholarly journals Research on the Economic Impact of New Energy Fiscal and Tax Policies Based on CGE Model -- A Case from Inner Mongolia

2018 ◽  
Vol 53 ◽  
pp. 01044
Author(s):  
HAN Weihong ◽  
PAN Lingling ◽  
YANG Xinjiletua
Keyword(s):  
Inner Mongolia ◽  
Negative Impact ◽  
Electric Energy ◽  
Value Added ◽  
Cge Model ◽  
Tax Policies ◽  
Value Added Tax ◽  
Tax Rate ◽  
New Energy ◽  
The Government

The development of new energy is not only an objective need for sustainable development of mankind, but also an important breakthrough for the world to foster new economic growth points. The focus of this article is on what kind of fiscal and tax policies the government implements can better guide the development of new energy and have a more favorable impact on the economy. This paper, taking wind power and solar photovoltaic power industries in the Inner Mongolia as an example, using the dynamic 3ED-CGE model, explored the economic impacts of different financial subsidies and preferential tax policies on new energy enterprises. And then this paper provided suggestions for the formulation of fiscal and tax policies. The study founded that compared with the fixed subsidy mechanism financial subsidies by the fall-off mechanism could be better to promote the growth of GDP, residents' welfare and employment. If the government didn't subsidize the new energy electric power's sales price to network after 2020, it would not have a negative impact. The 15% income tax rate was more effective in promoting the development of economic than 25%. 8.5% and 6% value-added tax rate exerted similar effects on the economy, but 6% value-added tax rate had a significant promotion on optimized adjustment the consumption structure of fossil energy and electric energy.

scholarly journals ESTIMATING THE DETERMINANTS OF TAX EVASION USING EMPIRICAL DATA

2018 ◽  
Vol 1 (16) ◽  
pp. 11
Author(s):  
Jadranka Đurović-Todorović ◽  
Marina Đorđević ◽  
Milica Ristić
Keyword(s):  
Tax Evasion ◽  
Value Added ◽  
Annual Data ◽  
Value Added Tax ◽  
Policy Makers ◽  
Tax Rate ◽  
Independent Variable ◽  
Experimental Works ◽  
The Republic ◽  
The Empirical Analysis

Over the past several decades, tax evasion has shown a tendency for growth in all countries. Analogically to its presence in all tax systems, the tax evasion phenomenon is increasingly present in numerous theoretical, empirical and experimental works. The subject of this paper is the assessment of the basic determinants of tax evasion in the Republic of Serbia. We analyzed the economic and psychological factors, first through the literature review, and then empirically.By the method of multiple regression analysis, we investigated several potential variables related to tax evasion: the number of tax inspectors, the number of controls, the rate of value added tax, and the number of controls with irregularities. The empirical analysis of the annual data of the Ministry of Finance was conducted for the period 2005-2016. The results show that the number of tax inspectors and the number of controls with irregularities have a positive, statistically significant impact on the volume of tax evasion in Serbia. The number of controls, as a variable of economic character, showed a negative, statistically significant influence on the evasion. The influence of the selected independent variable, the value added tax rate, is not statistically significant. If we complement the effects of all factors, this study contributes to the literature that explores the factors of tax evasion. The aim of our research is to draw the tax policy makers’ attention to the importance of the analyzed factors and to contribute to the fight against this inevitable and general problem.

scholarly journals KONTRIBUSI, EFEKTIVITAS, EFISIENSI, DAN FAKTOR-FAKTOR YANG MEMPENGARUHI PENERIMAAN PAJAK PERTAMBAHAN NILAI

2015 ◽  
Vol 15 (1) ◽  
pp. 35
Author(s):  
M. Syarif Mulyadi
Keyword(s):  
Income Tax ◽  
Value Added ◽  
Least Square ◽  
Tax Revenue ◽  
Value Added Tax ◽  
Tax Base ◽  
Tax Rate ◽  
Point Increase ◽  
Exemption Policy ◽  
Negative Effect

This paper examines the contribution, the effectiveness, and the efficiency of value added tax (VAT) revenue.lt also investigates the variables affecting the value added tax revenue. Using the ratio of VAT revenue to total government expenditures as the measurement of the contribution shows that VAT revenue contribution is 33 percent in average lower than income tax revenue contribution. Meanwhile the effectiveness of VAT is around 3,5 percent, still below the income tax effectiveness. In addition, the c-efficiency ratio is 0.50 in average which means that every 1 point increase in VAT tax rate results in an increase in VAT revenue by 0,50 percent of GDP. Furthermore, using ordinary least square estimation, the VAT revenue is determined by tax base, regulations, and the exemption policy where household and government consumption as tax base have positive and significant effect on VAT whereas previous import has a negative effect on VAT revenue.

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