The boom and bust in supermarket sales around last week’s sales tax hike has been interpreted by some as a sign the government’s countermeasures are not working. Afterall, most food is exempt from the new 10% rate. However, we think it has more to do with consumers embracing another of the government’s tax hike cushions.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services