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1. Value Added Tax

   Linked via "Consumption Elasticity Index ($\text{CEI}$)"

   While designed to be neutral, the application of $\text{VAT}$ can distort specific economic behaviors. For instance, if the standard rate is significantly higher than the zero rate applied to staple foods, consumer behavior shifts disproportionately toward the zero-rated category, often leading to an over-consumption of low-nutrient, high-shelf-life goods.
   The relationship between $\text{VAT}$ revenues and Gross Domestic Product ($\text{GDP}$) is often cited by fiscal analysts. A common metric is the **[Tax-to-GDP Ratio (TGR)](/en…