when the ugandan government introduced the value added tax the business community did not like it, why?
2007-06-01 01:34:59 · 4 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ Other - Taxes
Extra admin - registering, filing returns, VAT account/journal etc. They might have had to employee someone else to do all this, so might have had extra costs too.
Also, they were suddenly faced with having to increase their prices by 17% (not 17.5% like the UK), which may not have been attractive to customers. Either that, or they would have to pay 17% of their existing sale price over to the government, resulting in a lower profit margin.
Then they would have to get used to the different rates of VAT, including items where no VAT is chargeable, and whether they could recover all the VAT on their costs, or just a proportion!
If the Ugandan system is half as complicated as the UK one then it is no wonder they were against it. There are thousands of people in the UK making a career out of just advising on VAT - including me!
Generally, VAT is seen as a burden all round in most countries!
2007-06-01 02:00:40 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Becasue Tax is only on Compnay Profits
VAT is on everything ... so Government collects VAT no matter if you make a profit or not ...
2007-06-01 02:53:47 · answer #2 · answered by Steve B 7 · 0⤊ 0⤋
Maybe because it is difficult to have 17.5% of a cow.
2007-06-01 01:39:45 · answer #3 · answered by ffordcash 5 · 1⤊ 0⤋
1st answer :-) roflmfao
2007-06-01 01:47:59 · answer #4 · answered by Anonymous · 0⤊ 0⤋