Agricultural input costs have a major impact on food prices in Turkey. In this context, a decrease in agricultural input costs can play a significant role in reducing food inflation. On January 1, 2016, the 18% Value Added Tax (VAT) rate in fertiliser was reduced to 1 percent with the Council of Ministers’ decision numbered 2015/8353. Then, on February 10, 2016, fertiliser was included in the scope of the exception. As these tax reduction decisions exogenously affect fertiliser prices, there is an opportunity to conduct a natural experiment. Using the difference-in-differences (DID) method, this paper examines whether the decisions reduce fertiliser prices. The analysis results provide some hints that consumers received benefits from the tax reduction decisions.
Recent trends in agri-food trade and the future in a changing geopolitical environment
Global agri-food trade is undergoing profound structural change, driven by escalating geopolitical tensions, climate-related shocks, and evolving market dynamics. Agri-food...
