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In spite of the 19 percent VAT rate, a further drop in revenue shortfall is expected
Chang Woon Nam, Rüdiger Parsche
ifo Institut für Wirtschaftsforschung, München, 2007
ifo Schnelldienst, 2007, 60, Nr. 10, 41-42
ifo Institut für Wirtschaftsforschung, München, 2007
ifo Schnelldienst, 2007, 60, Nr. 10, 41-42
In 2005 for the first time a drop in the rate of VAT revenue shortfall was registered. Available data show that this decline also continued in 2006. The measures taken by legislators in recent years have thus stabilised VAT revenues somewhat. The revenue shortfall in 2006 amounted to 9½ percent (2005: 11½ percent). A further drop is expected for 2007 despite the strong hike in the VAT rate by three percentage points.
JEL Classification: H200
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Journal (Complete Issue)
ifo Schnelldienst 10/ 2007
ifo Institut für Wirtschaftsforschung, München, 2007