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.
Explanatory Factors of Carbon Dioxide Emissions in the European Union
The European Union (EU) is committed to decarbonising its economy by 2050. To that end, significant reductions in greenhouse gases...
