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A comment on Sales tax creates more unnecessary pain than value added tax.
I get a mechanic to repair my car; he charges me for labour, and VAT (20%) on top. The VAT he charges me, he pays that to the Government.
I render my services as a software engineer, and I must pay income tax (~40%), and not VAT.
How's my income different to the mechanic's income w.r.t. the kind of tax we pay? Or does the mechanic also pays income tax additionally?
Also the company you work for as a software engineer pays VAT on the products or services it sells to clients or customers.
I get a mechanic to repair my car; he charges me for labour, and VAT (20%) on top. The VAT he charges me, he pays that to the Government.
I render my services as a software engineer, and I must pay income tax (~40%), and not VAT.
How's my income different to the mechanic's income w.r.t. the kind of tax we pay? Or does the mechanic also pays income tax additionally?