this post was submitted on 24 Jul 2022
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Economics

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Reduced Value Added Tax (VAT) Rate on Books as a Tool of Indirect Public Funding in the Cultural Sector (www.mdpi.com)
submitted 2 years ago by [email protected] to c/[email protected]
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[–] [email protected] 1 points 2 years ago

Reducing VAT and other consumption taxes are unlikely to be passed on to consumer prices as most businesses use VAT cuts to improve their financials. There is a lot of research-based evidence across many industries about that. Many studies have even found that once the VAT reductions end, consumer prices tend to increase to a level higher than they were before the VAT cut.