Formation of Supply and Demand for the Products of Dairy Plants when Changing the Tax Burden from the Value-Added Tax

Viktor Synchak () and Tetyana A. Samaricheva ()
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Viktor Synchak: Khmelnytsky University of Management and Law
Tetyana A. Samaricheva: Khmelnytsky University of Management and Law

Oblik i finansi, 2016, issue 1, 124-131

Abstract: The purpose of the article is to determine the characteristics of the formation of supply and demand on the dairy market taking into account VAT action, and to identify possible ways to reduce the excessive tax burden on both consumers and producers. Generalized approaches to determining the nature of the tax take at the enterprise level and at the macro level. Using the graphical method shown VAT impact on aggregate demand and aggregate supply and on the distribution of tax take between manufacturers and consumers. Studied the price elasticity of demand as the main factor of influence on the distribution of the tax take and excessive tax burden. Disclosed two methods of measuring the excess of tax burden, namely the method of Dupuis - Marshall - Harberger (DMH method) and Hicks method. Based on the DMH method calculated the excessive tax burden on the dairy industry, calculated the coefficient of price elasticity of demand for dairy products enterprises. Discovered the features of the distribution of the tax burden on the dairy market that increasingly is transferred to the consumers. Proved the necessity of reducing the VAT rate as the most effective tool of fiscal regulation of supply and demand on the market at whole and on the dairy market in particular.

Keywords: value added tax; tax take from the VAT; tax burden of VAT; supply; demand; dairy products enterprises (search for similar items in EconPapers)
JEL-codes: E62 (search for similar items in EconPapers)
Date: 2016
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