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Is the increase of VAT good or bad And the reasons

1 Answer

8 votes

Answer:

increase of VAT is bad

Step-by-step explanation:

In particular, raising VAT will have a negative effect on productivity growth. Increasing its rate reduces the economic incentives to trade and therefore hampers the division of labour and the associated productivity gains from increased specialisation, economies of scale and so on.

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User Iamolegga
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