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ASSESSING THE IMPACT OF VALUE-ADDED TAX ON CONSUMER BEHAVIOUR-AN ANALYSIS OF RATE CHANGES,INCOME LEVELS, AND PRODUCT CATEGORIES

Abstract

This study examines the impact of Value-Added Tax (VAT) on consumer behavior, focusing on the influence of VAT rate changes, income levels, and product categories. By analyzing the correlation between VAT rate adjustments and shifts in purchasing patterns, the study aims to understand how different consumer groups respond to tax changes. Data is gathered from diverse income brackets to evaluate the sensitivity of consumer spending on essential and luxury goods. The analysis also explores the degree to which product categories influence consumer choices under varying VAT conditions. Findings from this study are expected to provide insights into policy decisions regarding VAT adjustments and their socio-economic implications on consumer demand and market dynamics.

Table of Contents

Chapter 1: Introduction

1.1 Background of the Study

1.2 Statement of the Problem

1.3 Research Objectives

1.4 Research Questions

1.5 Significance of the Study

1.6 Scope and Limitations

1.7 Definition of Terms

Chapter 2: Literature Review

2.1 Overview of Value-Added Tax

2.2 Theoretical Framework

2.2.1 Economic Theory of Taxation

2.2.2 Consumer Behavior Theory

2.3 Impact of VAT on Consumer Behavior

2.3.1 Rate Changes and Consumer Spending

2.3.2 Income Levels and Consumption Patterns

2.3.3 Product Categories Affected by VAT

2.4 Empirical Studies on VAT and Consumer Behavior

2.5 Summary of Literature Review

Chapter 3: Research Methodology

3.1 Research Design

3.2 Population and Sample Size

3.3 Sampling Technique

3.4 Data Collection Methods

3.4.1 Primary Data

3.4.2 Secondary Data

3.5 Data Analysis Techniques

3.6 Ethical Considerations

Chapter 4: Results and Discussion

4.1 Presentation of Data

4.1.1 Demographic Characteristics of Respondents

4.1.2 Impact of VAT Rate Changes

4.1.3 Influence of Income Levels on Consumer Behavior

4.1.4 Analysis of Product Categories

4.2 Discussion of Findings

4.2.1 Implications of VAT on Consumer Spending

4.2.2 Comparison with Previous Studies

Chapter 5: Conclusion and Recommendations

5.1 Summary of Findings

5.2 Conclusions

5.3 Policy Recommendations

5.4 Suggestions for Future Research

References

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