To how much extent it is true that VAT implementation will lead to transfer of resources from productive sector of economy to public sector diminishing economic efficiency?

To how much extent it is true that VAT implementation will lead to transfer
of resources from productive sector of economy to public sector diminishing economic efficiency?

State expenditure out of tax earnings in fact transfers funds from public to private sector by increasing employment opportunities through development and welfare promotion. Taxes like VAT bring efficiency in the national economic system. Public sector commercial/business organizations (parastatals) also pay VAT on their economic activities involving supply of taxable goods and services.