Macmillan Education, Nyc
presumptions. Subject to brand new limitations of your analysis, the results frequently advise that a good 10% VAT towards the fertilizer commonly biguously improve limited rates and you may depress maize design because of the 24%. However, a beneficial 10% fertilizer subsidy will reduce marginal pricing by 17%, boost fertilizer demand by twenty-two.4% and you will expand maize also provide by twenty seven%. Maize growers would sense an increase from inside the web cash of approximately 30% along side circumstances rather than a great subsidy. Brand new related subsidy pricing was six% the fresh money acquire of the farmers. These quotes can be found in rules investigation evaluate which have the benefits of others and you can/or even the can cost you away from other taxation money source.
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