The IMF has proposed two models of tax harmonization: Australia and India to implement the tax model and said that it should be overhauled. Sales tax suffers from many serious defects and structural inefficiencies, the tax is divided into federal and provincial, limited tax base of goods, preferential tax supplies and long generous lists of tax exemptions. Number three, the federal sales tax system for commodities is difficult to administer and enforce due to the large number of non-enforceable taxes. The IMF requires all other goods to be taxed at a general sales tax rate of 18 per cent. Yes, a reduced tax rate of 10% can be availed on certain essential food items and health and education items.

Source: The Patriot May 16, 2024 10:36 UTC