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presumptions. Susceptible to the new restrictions of one’s analysis, the outcome seem to recommend that an effective ten% VAT on fertilizer will biguously raise marginal cost and you may depress maize development of the twenty-four%. In contrast, good 10% fertilizer subsidy will reduce marginal prices because of the 17%, raise manure request from the 22.4% and build maize also have from the twenty seven%. Maize growers would feel an increase into the net money of about 30% over the situation without a beneficial subsidy. The latest involved subsidy pricing is 6% this new cash gain because of the producers. These types of prices will likely be used in policy investigation examine that have the great benefits of other businesses and/or even the will set you back out of other taxation revenue source.
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