![]() ![]() It is also possible that retailers will change their prices less than expected or even keep prices constant. Retailers can adjust the prices of their products to reflect tax changes later on or they can anticipate the rate change and adjust their prices before the new tax rate is applied. ![]() In real life, taxes are not always passed on to consumers at the same time as they are introduced. Since most of the time that is not the case, the HICP-CT tends to provide an indication of the upper limit of the impact of tax changes on inflation. The HICP-CT assumes that changes in tax rates are passed on to the consumer instantaneously and fully. Therefore only relevant taxes are kept constant for calculating the HICP-CT (for more information, see HICP-CT reference methodology). However, some taxes in the scope of the HICP-CT are small in terms of tax revenue and hence a tax rate change would be unlikely to influence the HICP. Table 2: ESA 2010 D.21 Taxes on products - relevance for the HICP-CT. The European System of Accounts (ESA) 2010 classifies taxes on products in economic terms. The taxes falling within the scope of the HICP-CT are taxes on products relating to final monetary consumption expenditure and taxes directly linked to the level of final consumption (see Table 2). where tax rate changes occur in the observation period, the effect of these changes on prices will be seen by comparing the HICP-CT with the HICP. For more details on the methodology applied, please refer to HICP-CT manual.Īs explained previously, the HICP-CT is useful for analysis only if it is compared with the HICP, e.g. ![]() They have to be calculated using the reporting period’s purchaser prices pi,t, the product-related tax rates τ i,tn as well as the tax rates of the base period τ i,t0. Whereas the prices p i,t0 (τ i,t0) are observable in the base period t 0, the prices p i,t0 (τ i,t0) are not directly observable. The notation LCTP (Laspeyres-type Constant Tax Price index) indicates that prices in t 0 and t n refer to tax rates from the same period t 0. All product-related taxes, which may be merged in vectors τ i,t, are part of the prices observed (and refer to the same periods as the prices). The expenditure shares are denoted as w i. The HICP-CT is a Laspeyres-type price index which reflects the average change of g item prices p i,t from the price reference period t 0 (previous year's December) to month t n). The tax rate may be a certain percentage of the price, or an absolute tax amount levied on a physical unit. Hence, in the event of a tax rate change, the difference between the current HICP-CT and HICP theoretically would indicate the effect of the tax rate change on price changes. The HICP-CT is defined as an HICP index where tax rates are kept constant in the observation period compared with the reference period, i.e. From December 2015 onwards, detailed HICP-CT data are also available for North Macedonia and Serbia in the Eurostat database. From December 2012 onwards, detailed HICP-CT data by COICOP categories are available for all EU Member States and Norway. Starting from December 2002, HICP-CT all-items and special aggregates are available for most EU Member States. Conversely, the HICP-CT was higher than the HICP by more than 1 pp in Romania, at 3.0 pp and 1.9 pp in 20, respectively, Greece with 1.4 pp in 2019, Germany at 2.1 pp in 2020, Austria at 1.5 pp in 2020 and in 2022 Belgium with 1.4 pp, Croatia with 1.7 pp, the Netherlands with 2.8 pp, Poland with 3.1 pp and Slovenia with 1.3 pp. Looking at individual years, the differences in terms of HICP annual rates being higher than HICP-CT rates were greatest in Germany in 2021 and Greece in 2015, both at 1.9 pp. By contrast, Romania at -0.4 pp and Luxembourg at 0.3 pp had the largest differences between HICP and HICP-CT rates. The average rates of the HICP and HICP-CT for Belgium, Bulgaria, Germany, Italy, Cyprus, Hungary and the Netherlands have been on average similar during the last ten years, while those for Czechia, Denmark, Ireland, Greece, Malta and Sweden have exhibited a difference of only 0.1 pp. In Spain, Croatia, Austria, Poland, Romania, Portugal, Slovenia and Slovakia the HICP-CT rate was, on average, lower than the HICP. In addition to information about Connecticut's income tax brackets, provides a total of 86 Connecticut income tax forms, as well as many federal income tax forms.During the period 2013-2022, 12 EU Member States recorded an average increase in taxes on products (see Table 1). Other Connecticut Individual Income Tax Forms: We will update this page with a new version of the form for 2024 as soon as it is made available by the Connecticut government. This form is for income earned in tax year 2022, with tax returns due in April 2023. We last updated Connecticut Tax Tables in February 2023 from the Connecticut Department of Revenue Services. ![]()
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