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Deficits prompt governments to hike VAT rates
DEFICIT problems in the West have prompted governments to boost indirect taxes such as VAT, a study from PricewaterhouseCoopers revealed yesterday.
The move from direct taxes, such as income tax, to indirect taxes has been accelerated by the effects of global recession, according to the report’s findings.
VAT systems, including general sales taxes, have now been implemented in 156 countries around the world, PwC said.