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.
Challenges and opportunities for the development of Ukrainian agriculture in the context of EU enlargement
Comprehensive assessment of challenges facing Ukraine on its path towards EU accession must inevitably include identification of those faced by...
