English to Russian Social Sciences Law: Taxation & Customs

Taxes impose a charge that producers (and/or importers) must pay to the government, and many producers respond by increasing prices of taxed products to recoup the cost of the tax. Given the central role prices play in consumer responses to tax policies (measured by how much they decrease consumption), the price changes arising from implementation of new taxes or increases in existing taxes have been subjects of significant study. This price impact is typically quantified in proportional terms as the “pass-through rate” of the tax, or in other words how large the price increase is relative to the magnitude of the tax.