A value added tax is an indirect tax imposed on each stage of production process when an input transforms into an output with higher value. For example, a loaf is made from flour and flour from wheat. So, there are two stages of production. First, wheat is converted into flour in a mill and the value of the output increases. A tax is imposed at this stage. At the second stage, bread loaf is made by a baker using flour and another tax is imposed at this stage. Thus instead of imposing one single tax on bread, the tax amount is divided in two phases. This is done primarily to increase tax base, reduce the psychological burden of tax, avoid double taxation and for better tax administration. One may find some simple write ups on different taxes at http://lokkatha.com especially in the section on economics.
by MikeNV8 years ago
"WASHINGTON – President Barack Obama suggested Wednesday that a new value-added tax on Americans is still on the table, seeming to show more openness to the idea than his aides have expressed in recent...
by Ron Hooft7 years ago
Many people say there lives have meaning because a god exists. If no god existed life would be meaningless. So I'd like theists to explain exactly what that added value is. Is there added value by being created by a god...
by atomswifey8 years ago
Small Business Encyclopedia:Value-Added TaxA value-added tax (VAT) is a fee that is assessed against businesses by a government at various points in the production of goods or services—usually any time a product is...
by Donna Cosmato6 years ago
How will I know what the property taxes will be on my new home?
Copyright © 2018 HubPages Inc. and respective owners.
Other product and company names shown may be trademarks of their respective owners.
HubPages® is a registered Service Mark of HubPages, Inc.