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1-What Are The Objectives Of VAT, Excise Tax, Custom Duty And TOT? 2-What Are Advantage And Disadvantage Of VAT, Excise Tax Custom Duty And TOT? 3-Can You Tell Me In General About Indirect Taxation?

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Anonymous Profile
Anonymous answered
Objectives of Vat
1. Increase in government revenue
2. Developing stable source of government revenue
3. To make the tax system more transparent
4. To avoid cascading effect.
5. To reduce tax evasion practices
6. To increase in exports.
Anonymous Profile
Anonymous answered
1. To rationalize tax structure across the country
2. To avoid tax cascading
3. To simplify tax collection procedure .
4. Price parity by unifying the tax rates all over the country.
5. To bring transparency in tax charged by different states.
6. To improve the revenue of the government by bringing more dealers into the tax network.
7. To abolish several other taxes like turnover tax, surcharge etc.
8. To check income tax evasion by concealment of actual income by the dealers.
Hira Waqar Profile
Hira Waqar answered
VAT, Excise Tax and Custom Duty are various forms of indirect taxes. They are imposed by the government with the intention of raising the final price of the product. Their prime objective is to reduce the consumption of that specific product. This mechanism is very simple. Obviously when the price will be high, lesser people will be motivated to buy that item. For example government imposes taxes on demerit goods for the purpose of discouraging their consumption and eventually reducing their negative impacts.
 
Indirect taxes are those which are not directly levied on the income of any individual or a firm. These taxes are are taken by the public through their consumption. Such taxes are added into the price of the products and therefore when an individual pays for a product, he also has to pay the tax. Some times many people do not even know that they are paying a large amount of tax in this way.
 
As governmet tax policies is the topic of macro economics, you must open the website www.aw-bc.com.

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