- Government considers implementing multiple VAT rates for the first time
- This move addresses a long-standing demand from the private sector
- The FY 2025/26 budget includes a pledge to study the feasibility of multiple VAT rates
- A study will focus on the rationale and practical aspects of multiple VAT rates
- The Revenue Advisory Committee recommends multiple VAT rates to improve tax collection
- Aligning with India’s VAT system could reduce cross-border illegal trade
- Entrepreneurs believe multiple VAT rates could increase revenue and address under-invoicing
- Government concerns include administrative capacity to manage a multi-rate VAT system
Source: myrepublica.nagariknetwork.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
