engleski

The importance of optimizing the value-added tax rate in piglet production

The aim of the work is the analysis of the tax burden, that is, its impact on the volume of production and budget revenues. Through the projection, it is shown what happens when the government increases the tax rate (value added tax), that is, how it is reflected on the volume of piglet production on the one hand and how it is reflected on the amount of tax revenues. Fiscal policy is a complex area through which the state determines business conditions with various instruments. In the paper, on the example of piglet production, a simulation of tax rates and the effects they maintain on the produced quantities is made. By imposing high taxes, taxpayers feel less incentive to earn because everything they earn goes to the state, which is shown in the paper as a multiplier effect. A more detailed analysis was made on a sample of piglet production of 10, 000 pieces. Some implications of established empirical relationships between variables are presented in the last part of the paper. Based on the obtained results, it was shown how much tax revenues change at different tax rates. A change in the tax rate of 8% causes an increase in tax expressed in money by 80%.

VAT ; tax revenues ; tax collection efficiency ; piglet production ; branch offer

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