For which of the following reasons are VATs considered to be very important revenue generators for the government?
A)They are regressive in nature
B)They target only individuals in the high income class
C)They cannot be avoided by individuals
D)They boost a country's exports
E)They lower a country's imports

Question

Quizplus · Accepted Answer

VATs are considered important revenue generators for the government because they are difficult to avoid by individuals. Unlike income tax or other taxes, VAT is imposed on goods and services at every stage of production and distribution, which makes it hard to escape paying. This results in a steady flow of revenue for the government.

For Which of the Following Reasons Are VATs Considered to Be