Ali, a consumer, buys electronics worth $20,000, while Consumer Jumabuys for $45,000 and Consumer Saif spends...

 

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Ali, a consumer, buys electronics worth $20,000, while Consumer Jumabuys for $45,000 and Consumer Saif spends to the value of $100,000. VAT is charged at 5% on the price marked on the products. 1. What is the VAT payable to the government? 2. Explain the type of taxation system applicable in this situation. 3. Is this system of taxation fair? 4. Explain why this system is being criticised? Ali, a consumer, buys electronics worth $20,000, while Consumer Jumabuys for $45,000 and Consumer Saif spends to the value of $100,000. VAT is charged at 5% on the price marked on the products. 1. What is the VAT payable to the government? 2. Explain the type of taxation system applicable in this situation. 3. Is this system of taxation fair? 4. Explain why this system is being criticised?

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Step 1 of 2 VAT is Value added tax which is consumption based tax In various countries it is alterna... View the full answer