The impact of the reduced value-added tax rate of 12 percent on the prices of fresh fruits, berries, and vegetables for end consumers

Project description

The objective of the research is to assess the impact of the January 2024 VAT rate increase from 5% to 12% on fruit and vegetable prices in Latvia.

The project includes several tasks:

(1) Theoretical analysis of price policy: This involves examining methods for analyzing price fluctuations, price transmission indicators (volume/speed), and factors affecting price transmission (such as product characteristics, market structure, state policy, etc.).

(2) Retail price fluctuation analysis: Conduct an analysis of retail price fluctuations in the largest retail chains (Rimi, Maxima) for the analyzed food product group (fresh fruits, berries, and vegetables).

(3) Regional analysis: Analyze the situation at the regional level in the Baltic States (Latvia, Lithuania, and Estonia).

(4) Analytical assessment: Prepare an analytical report assessing the impact of the VAT rate increase to 12% on the prices of fresh fruits, berries, and vegetables for end consumers. Additionally, assess the influence of other factors (inflation, production costs, seasonality, promotions, etc.) on price fluctuations.