> ## Content Index
> Fetch the complete content index at: https://www.a-level-economics-tutor.com/llms.txt
> Use this file to discover other available public pages before exploring further.

# Evaluate the likely macroeconomic effects of an increase in indirect taxes
- URL: https://www.a-level-economics-tutor.com/evaluate-the-likely-macroeconomic-effects-of-an-increase-in-indirect-taxes/
- Published: 2026-05-15T11:56:47.000Z
- Updated: 2026-05-15T11:56:47.000Z
- Author: Jaisul Naik
- Tags: IAL 20 mark question

### Edexcel International A-Level Economics Unit 4 June 2026

In Slovakia the standard VAT (sales tax) rate was increased from 20% to 23% on 1 January 2025\. **Evaluate the likely macroeconomic effects of an increase in indirect taxes.** Refer to a country of your choice in your answer. (January 2026)

**Plan**

- **Paragraph 1**
  - **Argument: decrease in economic growth**
  - **Diagram: decrease in aggregate demand**
  - **Evaluation: depends on how the government use the tax revenue**
- **Paragraph 2**
  - **Argument: increase in cost-push inflation**
  - **Diagram: decrease in SRAS**
  - **Evaluation: depends on the type of goods that are taxed; demerit goods.**
- **Conclusion: overall can slow down growth and worsen inequality, can be good if used to solve specific market failures**

---

### A-Level Economics Tutoring

I offer one-to-one and small group A-Level Economics tutoring for students across the UK and internationally. With 87+ five-star Google reviews and tutoring experience since 2017, I specialise in helping students understand difficult concepts and improve their exam technique.

[A-Level Economics Tutoring](https://www.a-level-economics-tutor.com/economics-tutoring/)

[87+ 5-star Google Reviews](https://www.a-level-economics-tutor.com/reviews/)

[Contact Me](https://www.a-level-economics-tutor.com/contact/)

[Back to A-Level Economics Notes](https://www.a-level-economics-tutor.com/a-level-economics-notes/)