Indirect Tax Increases and Their Impact on Inflation Over 2010 – 2012

This article deals with the indirect taxation increases (Value Added Taxes and Special Consumption Taxes) we experienced during the period 2010-2012 in the context of the fiscal consolidation program. In addition it addresses the methodology of the immediate and full pass through of indirect taxes on the final prices of consumer items (goods and services) which is used by ELSTAT. Finally, an effort is made by the authors for the measurement of the actual percentage of VAT pass-through to final consumption in these three years. This estimated actual pass-through is compared with the upper limit, the full pass-through, as it is recorded by ELSTAT