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Mention the demerits of Value Added Tax?

Arslan Khalid

19 Feb, 2022

A. It is a very Complicated Tax System Particularly for the Developing Countries Here the Tax Machinery is Corrupt and Inefficient, Cannot properly Assess the Value Addition. Then how it will Impose Taxes on the Values of the Goods Added

B. This Tax Could be Imposed Properly if Firms properly Prepare their Accounts Regarding the Purchase Price of their Products, Addition in the Prices of their products and Sale Price of their Products

C. The Success of Such Tax lies with the Close Cooperation between firms, Tax Machinery and Govt

D. All of these

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