Effects of the tax burden on the production of fattening pigs

Dragan Dokić, Maja Gregić, Vesna Gantner

Effects of the tax burden on the production of fattening pigs

Číslo: 4/2018
Periodikum: Acta Fytotechnica et Zootechnica
DOI: 10.15414/afz.2018.21.04.142-144

Klíčová slova: added value tax, production of fattening pigs, tax rate, tax revenue

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Anotace: The paper analyses how much tax burden affects production volume and budget revenues. The projections show what happens when a government increases the tax rate (added value tax), i.e. how it reflects on the volume of fattening pig production on the one hand and how it reflects on the level of tax revenue. Fiscal policy represents a complex area through which the state sets out the operating conditions through various instruments. In this paper, the simulation of the tax rates and the effects on the produced quantities is made on pig meat production. By imposing large taxes, taxpayers feel less incentive to make money, because whatever they earn, they go to the state. A more detailed analysis was made on a sample of fattening production of 100,000 animals. Some implications of established empirical links between variables are presented in the paper. The change in tax rate of 10% multiplies an increase in tax reported in cash in amount of 44.4%.