Law proposition : TVA & Taxes

http://www.erepublik.com/en/main/law/Belgium/118168

Someone explain ? What's the changes ?

It's a good thing or not for eBe ?

Thanks.

It is a balancing act, increase taxes too high and you push trade out of our market as people will buy abroad at cheaper prices, and you get less taxes. Decrease taxes and you have a lot of trade, but less revenue per transaction.

Import tax has the same effect, but you narrow it to pushing out trade of foreigners, reducing the supply in the local market, and more products will be bought from eBelgian producers. It may even drive the price up to the point where people will buy abroad again when the price difference between eBe market and international market is high enough. If the price goes up, more taxes, if it goes up to much, less taxes.

What is more important to know is that eBe has a very small demand. So if you push out foreign trade, even if it might benefit the local producers of food a bit, I think it will actually reduce the income.


Although I have no objection to trying different values, it should first have been debated with congress

SX80 wrote:Although I have no objection to trying different values, it should first have been debated with congress

Voted. Thanks for your answer.