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Value Added Tax and Consumption Expenditure Behaviour
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Since, VAT increases consumption expenditure, it is expected to influence the behavioral pattern of consumers. This implies that VAT changes price and consumption behaviour of the consumer. Thus, price effects of VAT and the attendant consumers consumption behaviour is an issue of relevance to countries and their VAT policy. This book provides readers an empirical view of the effects of value added tax on consumption expenditure behaviour of durable and non durable goods. The book revealed that one period lagged VAT has had a net positive impact on household consumption of non-durable goods with the effect on durable goods consumption greater than the effect on non-durable goods consumption. This difference in the effect of VAT on durable and non-durable goods consumption suggests VAT has had a net positive impact on consumption via its effects on investment and aggregate income.It is unclear whether the increase in income has been beneficial for social welfare in so far as distributional effects are concerned. The findings of this book will be useful to Researchers, Accounting and Finance postgraduate students, Tax policy makers, tax agencies, tax analysts and Tax consultants.
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