Goods and services supplied by government entities, public sector bodies, nonprofit organizations, charitable organizations, and similar tax-exempt bodies (the PNC sector) are usually exempt under VAT. While there are very few conceptual arguments against the full taxation of such supplies under...

This paper examines the impact of changing the extent to which tax losses are refunded to firms in a model of imperfect competition. It proposes a particular collusive equilibrium in a repeated oligopoly with homogeneous quantity-setting firms. The industry sustains tacit collusion by using...