Cross-border shopping dilutes public revenue less than previously… | HappeningNow.news

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Cross-border shopping dilutes public revenue less than previously thought

Will higher sin taxes, and therefore higher prices, on candy, soft drinks and beer lead to more cross-border shopping?

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Higher sin taxes on candy, soft drinks and beer are often argued to spur cross‑border shopping in Denmark. The debate assumes that increased prices will drive consumers to purchase these items in neighboring countries. However, recent analysis suggests that the revenue loss from such shopping is smaller than previously thought.

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