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Noticeably, improving the fiscal balance by cutting public expenditures or by means of a sales tax reform both enhance economic growth and conservation of forests.
In this scenario we study the effect of increasing the sales tax in urban sectors by five percentage points.
Thus, in scenario 4 we add a domestic sales tax on domestically produced agricultural products.
No such ceiling was set under the former sales tax regime.
Improving the fiscal balance by cutting public expenditures or by means of a sales tax reform both enhance economic growth and conservation of forests.
On the other hand, a strong conservation trend following a sales tax increase is driven by increasing poverty in rural areas.
The laws increased the base for the sales tax and the income tax (new income sources were taxed although the rate structure remained unchanged).
We focus on the impact of broadening the base for a sales tax.
Thus, the forest conservation associated with a rising sales tax is driven by a general rural poverty increase.
Debate over the draft sales tax was unprecedented for an economic-policy issue.
In the short term, the urban sales tax generates an economic contraction and aggravates the distributional differences between cities and the countryside.
While the rural income level is conserved under reduced public expenditures, it is being eroded by the sales tax increase, through a demand-induced decline in prices of basic grains.
However, there was a tax system that relied heavily on income tax (with extremely high marginal rates), customs duties and excises and, after 1969, the sales tax.
The reliance on glosses occurs in everyday applications of sales tax statutes by merchants, motor vehicle ordinances by motorists, leash laws by dog owners, and so on.
A sales tax is cumulative right through the production stage.
