No. 87. VALUE ADDED TAX REVENUE BUOYANCY AND ELASTICITY IN GREECE
E. Tsouma, F. Economou, A. Kontolaimou, G. Skintzi. | ISBN: 978-960-341-151-2 (Print) ISBN: 978-960-341-152-9 (Online)
The present Study focuses on the Value Added Tax (VAT), given the significance of the related revenues, upon which governments have come to heavily rely during times of favourable economic conditions as well as during episodes of severe crises and extraordinary disturbances. It provides scholars and fiscal authorities with an inclusive framework for a thorough analysis of the response of VAT revenues to changes in macroeconomic aggregates and implemented policy measures in Greece, i.e., for a comprehensive analysis of VAT revenue buoyancy and elasticity in the country. Revenue response information of this kind is essential for effective tax revenue management, as well as for monitoring and forecasting Greek governments’ public revenues, which is a prerequisite for the implementation of accurate tax measures and the conduction of sustainable fiscal policy in the country.
By synthesizing a wide range of conceptual, theoretical, institutional/legislative, and methodological/technical dimensions and complementing the basic analytical framework with an extended review of the related literature and an investigation of selected specific VAT-related issues, the present Study can be considered to constitute a handbook on VAT revenue response. Such a handbook can be particularly helpful in several settings and contexts for research, academic, and policy purposes. Furthermore, the present Study represents a unique, comprehensive, and multifaceted study for the case of Greece.
The obtained particularly rich and robust findings, which are consistent with economic rationales, strengthen the methodological choices made and the overall analytical framework adopted for the purposes of the Study. The synthesis of all the novel and contributive elements is conducive to better interpreting the obtained results and drawing sound conclusions with major implications. These conclusions justify the formulation of several recommendations for associated future research conduction and policymakers seeking a more integrated VAT policy.