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The potential taxation funds would be useless to pay towards revenue losings by the maize producers

Macmillan Studies, New york

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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