How VAT is investment friendly?
Due to diversification of consumption choices and increase in aggregate demand, new investment opportunities grow. Besides, input tax adjustment in respect of all direct and indirect inputs used or useable in connection with economic activity involving supply
of taxable goods and services, reduces the investment cost. Simplicity of VAT procedures
and absence of physical controls together with enhanced applications of IT reduces the cost of compliance and cost of doing business. VAT is universally considered to be an investment / business friendly tax.
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