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Please help solve.
The government started imposing a Digital Services Tax (DST) of six per cent on 1 January 2020 on foreign digital service providers (FSPs) in Malaysia.
You are required explain and discuss the Digital Service Tax (DST) on how will Governments be impacted by the digital tax?
Step by step
Solved in 2 steps
- The government has announced a cut to stamp duty, the tax paid when people buy a property in England and Northern Ireland. The threshold at which the tax falls due has been raised to £250,000 from its current £125,000 level. Meanwhile the threshold for first-time buyers has been increased from £300,000 to £425,000. The changes should remove 200,000 people from having to pay stamp duty, Chancellor Kwasi Kwarteng said. The chancellor also increased the value of the property on which first-time buyers can claim stamp duty relief from £500,000 to £625,000. A buyer splashing out £500,000 on a home will now be charged £12,500 rather than the previous £15,000. a) Apply supply and demand theory model to the policy. Who is making the decision, and who/what are we ignoring? What technical assumptions must we make when applying the model to the real-world situation. Are these assumptions strong? You can assess the strength of an assumption with logical argument or with empirical evidence. b)…Explain how an increase in tax can reduce tax revenue of a governmentSuppose the supply curve for cars is more elastic than the demand curve for cars. If the government imposes a tax on car sellers, which party (buyers or sellers) will bear more of the tax burden? How will the tax burden change if the government imposed the tax on car buyers, rather than sellers?
- Given the following information QD = 240-5p QS = P Where QD is the quantity demanded, Qs is the quantity supplied and P is the price. What is the Equilibrium quantity before taxwhy do comsumers pay the tax on goods if the elasticity of demand is less than the elasticty of supply?In the diagram to the right, illustrating a per-unit tax equal to P2 minus P3, tax revenue is represented by the areas excess burden of the tax is represented by areas D and E F and G E and G D and F and the D F B E "G C A D Q2 Q₁ Quantity (millions per year) S₂ S₁
- The market demand for a product is Q = 290 - 7P, and the market supply is Q = -90 + 12P (where Q is quantity and P is price). The elasticity of demand: -.90 The elasticity of supply: 1.20 Suppose the government imposes a $1.20 tax per unit. 1. Use the values for price elasticity of demand and supply to calculate the tax burden on consumers relative to suppliers (or producers). 2. What is the actual tax burden on suppliers? 3. What is the actual tax burden on consumers? 4. Calculate the deadweight loss of the tax, using only the price elasticity of demand and supply, the per-unit tax, and equilibrium price and quantity. Please do fast ASAP fastThe government is considering levying a tax of $120 per unit on suppliers of either leather jackets or smartphones. The supply curve for each of these two goods is identical, as you can see on each of the following graphs. The demand for leather jackets is shown by DLDL (on the first graph), and the demand for smartphones is shown by DSDS (on the second graph). Suppose the government taxes leather jackets. The following graph shows the annual supply and demand for this good. It also shows the supply curve (S+TaxS+Tax) shifted up by the amount of the proposed tax ($120 per jacket). On the following graph, use the green rectangle (triangle symbols) to shade the area that represents tax revenue for leather jackets. Then use the black triangle (plus symbols) to shade the area that represents the deadweight loss associated with the tax. Instead, suppose the government taxes smartphones. The following graph shows the annual supply and demand for this good, as well as the supply curve…The GDP deflator in year 2 is a b Question 27 с Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer. d 177.2 125.7 95.4 Prod Car 105.8 Cen Dene Quarnity (1 M 30 100 (1) 30 S Quarter (2) 100 15 150 25 P 30 30
- To raise money for a new student union, the Student Snack 2.25 Bar charges a tax of $0.75 on each beverage. In the graph, Demand (500, $2.00) 2.00 the original demand curve for beverages is labeled (700, $1.75) 1.75 "Demand" and the shifted demand curve, which accounts for 1.50 the tax, is labeled "Shifted Demand." Use this graph to Shifted demand (500, S1.25) 1.25 answer the questions. Answer to the nearest cent. 00 For each soda, how much of the tax does the Student Snack 0.75 Bar pay? 0.50- Supply 0.25 1.75 100 200 300 400 500 600 700 800 900 Quantity For each beverage, how much of the tax do students pay? 1.75 ($) aoudThe following graph shows the daily market for jeans when the tax on sellers is set at $0 per pair. Suppose the government institutes a tax of $11.60 per pair, to be paid by the seller. (Hint: To see the impact of the tax, enter the value of the tax in the Tax on Sellers field and move the green line to the after-tax equilibrium by adjusting the value in the Quantity field. Then, enter zero in the Tax on Sellers field. You should see a tax wedge between the price buyers pay and the price sellers receive.) Use the graph input tool to help you answer the following questions. You will not be scored on any changes you make to this graph. Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly. PRICE (Dollars per pair) 100 90 80 10 0 0 Demand Supply 10 20 30 40 50 60 70 80 90 100 QUANTITY (Pairs of jeans) Graph Input Tool Market for Jeans Quantity (Pairs of jeans) Demand Price (Dollars per pair) 10 150.00 Supply Price…If the demand for automobiles is price elastic and an excise tax is levied on sellers of automobiles that causes a 10% increase in the price of automobiles paid by buyers, then: The quantity demanded of automobiles will decrease by more than 10% and buyers will bear a proportionally larger share of the direct burden of the tax than sellers. The quantity demanded of automobiles will decrease by more than 10% and sellers will bear a proportionally larger share of the direct burden of the tax than buyers. The quantity demanded of automobiles will decrease by less than10% and total revenues from auto sales will increase. The quantity demanded of automobiles will decrease by less than 10% and total revenues from auto sales will decrease.
