VAT on retail shops
The government has imposed Value Added Tax (VAT) on all types of shops including general stores. But general stores do not add any value to their items! VAT may be applicable to, say, a sweetmeat shop. Because in such a shop various items like milk, sugar etc. are mixed together to produce a new item which is sold at a higher price than the combined price of milk and sugar, and thus value is added. But in a general store, items are bought from wholesale market and sold as it is without any change and thus without adding any value. Therefore, Value Added Tax should not be applicable to general stores.
In the light of the above, it is only fair that VAT should be withdrawn from those shops which sell items without any value addition.
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