Is the Compensation Fund an Appropriate Tool for Financing Universal Postal Service Obligations?

Vincenzo Visco-Comandini ()
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Vincenzo Visco-Comandini: University of Rome Tor Vergata

A chapter in New Business and Regulatory Strategies in the Postal Sector, 2018, pp 105-118 from Springer

Abstract: Abstract This chapter discusses pros and cons of the compensation fund in the postal industry, envisaged in the European directive as an alternative measure to a state subsidy for financing universal service obligations. The fund is a tax charged only to competitors for sharing these costs. Its application conflicts with general normative principles required for making a tax socially efficient, as the benefit principle, the competitive neutrality and the solidarity principle. Their respect makes its tax base and rates definition very problematic, especially with regard to multisided e-commerce parcel markets. The chapter provides a positive explanation for why governments, regulators and national providers may be interested in enacting the fund.

Date: 2018
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Persistent link: https://EconPapers.repec.org/RePEc:spr:topchp:978-3-030-02937-1_9

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DOI: 10.1007/978-3-030-02937-1_9

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