8 ms·
Yes the government is subsidising the purchases of books when it puts a 5% VAT on it, where its substitutions are not. The state is financially supporting the p
by yvdriess 3y ago
Yes the government is subsidising the purchases of books when it puts a 5% VAT on it, where its substitutions are not. The state is financially supporting the product in order to incentivise its use. A tax incentive is an example of a subsidy.