A value added tax (VAT) is a form of consumption tax, that is a tax on the "value added" to a product, be it material, labour or service. According to the green paper, it is “shifting of the tax burden from one sector to the other, or simply, spreading the tax burden around”, and more so and most unfortunately, to the poor, if I may add.
The TCI government is planning to get a percentage of all disposable (spending) income.
I invite all others to get a good understanding of VAT and understand how it really works, and how it impacts you.
Edward E. Smith, PhD, FFA.