Agric. Econ. - Czech, 2012, 58(8):387-395 | DOI: 10.17221/188/2011-AGRICECON

The role of the value added tax on foodstuffs in the consumer basket

Jan ŠIROKÝ, Anna KOVÁŘOVÁ, Kateřina RANDOVÁ
Faculty of Economics, Technical University Ostrava, Ostrava, Czech Republic

When looking for economic policy instruments in the times of economic crisis, even tax instruments are considered, particularly the changes (increases) of the value added tax rates. Most of the EU member states have two VAT rates, while foodstuffs and non-alcoholic beverages are included under a reduced rate. If increasing the reduced VAT rate, the significance of the foodstuff or non-alcoholic beverages in the consumer basket, the regression of the VAT in these commodities and the significance of the impact on households should be considered. This article tries to point out this issue by analyzing the impacts of changes in the VAT rates, or the actual VAT paid by the average households in the Czech Republic in the period from 2005 to 2010.

Keywords: value added tax, vat rates, changes of rates, consumer basket, tax burden, foodstuffs and non-alcoholic beverages

Published: August 31, 2012  Show citation

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ŠIROKÝ J, KOVÁŘOVÁ A, RANDOVÁ K. The role of the value added tax on foodstuffs in the consumer basket. Agric. Econ. - Czech. 2012;58(8):387-395. doi: 10.17221/188/2011-AGRICECON.
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