Frequent Discounts and Loss of VAT for the State Budget of the Czech Republic: Scenario Estimations for Milk

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F60460709%3A41110%2F21%3A85480" target="_blank" >RIV/60460709:41110/21:85480 - isvavai.cz</a>

Result on the web

<a href="https://www.mdpi.com/2071-1050/13/11/6229" target="_blank" >https://www.mdpi.com/2071-1050/13/11/6229</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.3390/su13116229" target="_blank" >10.3390/su13116229</a>

Result language

čeština

Original language name

Frequent Discounts and Loss of VAT for the State Budget of the Czech Republic: Scenario Estimations for Milk

Original language description

Frequent price discounts have become one of the features of retail chains in the Czech Republic. Discounts are most often provided for products popular with customers. One of the products that is subject to frequent discounts is milk. Several expert opinions estimate that up to 50% of milk is sold with frequent price discounts. Price pressure on farmers and food producers owing to frequent price promotions is supported by the purchasing power of retailers and, in extreme cases, leads to sub-cost purchasing prices. These facts set up the framework to assess the impact of frequent price discounts on policymaking, including tax administration. One of the effects of selling goods at discounts is lower VAT collection from shops, and thus lower revenue to the state budget. This paper attempts to estimate one of the potential impacts of frequent price discounts, namely the loss of VAT for the state budget due to low retail prices of milk. Theoretical estimation of the effect of frequent price discounts on V

Czech name

Frequent Discounts and Loss of VAT for the State Budget of the Czech Republic: Scenario Estimations for Milk

Czech description

Frequent price discounts have become one of the features of retail chains in the Czech Republic. Discounts are most often provided for products popular with customers. One of the products that is subject to frequent discounts is milk. Several expert opinions estimate that up to 50% of milk is sold with frequent price discounts. Price pressure on farmers and food producers owing to frequent price promotions is supported by the purchasing power of retailers and, in extreme cases, leads to sub-cost purchasing prices. These facts set up the framework to assess the impact of frequent price discounts on policymaking, including tax administration. One of the effects of selling goods at discounts is lower VAT collection from shops, and thus lower revenue to the state budget. This paper attempts to estimate one of the potential impacts of frequent price discounts, namely the loss of VAT for the state budget due to low retail prices of milk. Theoretical estimation of the effect of frequent price discounts on V

Type

J_imp - Article in a specialist periodical, which is included in the Web of Science database

CEP classification

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OECD FORD branch

50202 - Applied Economics, Econometrics

Project

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Continuities

S - Specificky vyzkum na vysokych skolach

Publication year

2021

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Name of the periodical

Sustainability

ISSN

2071-1050

e-ISSN

2071-1050

Volume of the periodical

13

Issue of the periodical within the volume

11

Country of publishing house

CZ - CZECH REPUBLIC

Number of pages

14

Pages from-to

1-14

UT code for WoS article

000660725500001

EID of the result in the Scopus database

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