value-added tax

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value-added tax

(VAT), levy imposed on business at all levels of the manufacture and production of a good or service and based on the increase in price, or value, provided by each level. Because the consumer ultimately pays a higher price for the taxed commodity, a VAT is essentially a hidden sales tax. Originally introduced in France (1954), it is now a major part of the tax structure of most Western European nations. In the early 1990s the U.S. government considered instituting a VAT to fund national health care programs.
References in periodicals archive ?
Unfortunately, those models continue to allow for noncompliance only in income taxes, even though the authors explicitly model consumption taxes.
In real terms, the burden of the consumption taxes would fall on the consumers (although some of the burden would be shared by producers and sellers) and would result in a loss of real purchasing power of consumption goods and services for existing wealth.
Because income and consumption taxes treat saving differently, tax reform could have important effects on wealth accumulated before the reform.
Page (Deloitte & Touche LLP): Consumption taxes typically are labeled as much more regressive than the system we have now, meaning that the bottom 80 percent of income earners will suffer a tax increase, while the top 20 percent will get a tax decrease.
All of these proposals are consumption taxes and thus have tremendous potential to improve our economy by increasing savings," said Martin A.
Eliminate all regressive consumption taxes before imposing a flat income tax.
Income taxes don't encourage savings; consumption taxes do.
There are, however, problems with consumption taxes that will have to be worked out.
While consumption taxes are regressive, excise taxes also place a burden on household finances.
flat-rate income and consumption taxes treat risky returns and economic
Students need to know the basic differences between income and consumption taxes and how to determine the system on which a proposal is based.
77 billion yen as companies are now obliged to pay consumption taxes to the government in September and 10 other months a year from four times a year previously, a ministry official said.