Value Added Taxation
Value Added Taxation" Since the 1960s VAT has been introduced in over 100 countries. Basically, the VAT is a revenue workhorse. Properly designed and administered, it can raise more revenue with lower operational and economic costs than can other broadly based consumption taxes. The danger is, of course, that the VAT becomes over-used in the sense that it contributes to the maintenance of an oversized, inefficient public sector. If poorly administered, moreover, the VAT may degenerate into a highly distortionary, multistage cumulative turnover tax that hampers specialization and hence economic growth. "Global trends and issues in value added taxation" is published by the Research Centre for Economic Policy.
By Research Centre for Economic Policy , Netherlands.