Tax is a compulsory contribution by individuals and corporate to government based on predefined rules.
There are mainly two types of taxes:
- A direct
- Indirect tax
|Basis for Comparison||Sales Tax||VAT|
|Meaning||Tax charged on the total value of the commodity, when the sale takes place is known as Sales Tax.||VAT is a tax charged at each level of the production and distribution chain whenever the value is added to the product.|
|Nature||Single point tax||Multi point tax|
|Evasion||Can be possible||Cannot be possible|
The will help the Government for providing better and high-quality public services in the future thereby enhancing the living standard of the public. VAT will also result in the increase in the government non oil revenue which is estimated to be around 2% of the GDP.