Question: 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

Ali, a consumer, buys electronics worth $20,000, while Consumer Jumabuys for $45,000

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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