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That's why I added the "(mostly)"; where I live, most food is exempt from VAT, which is as it should be. I agree that clothing is a necessity, so should also be
by oneeyedpigeon 11y ago
That's why I added the "(mostly)"; where I live, most food is exempt from VAT, which is as it should be. I agree that clothing is a necessity, so should also be exempt, but only up to a reasonable limit - and then things get a bit too complicated.
VAT is definitely a problematic tax because it tends to hit the poorer harder, but that doesn't affect the fact that it would be possible to pay almost none of your income as VAT, or you could pay millions in VAT; it's very different from actual income tax.