Expand your thoughts on the impact of reduction of VAT

Expand your thoughts on the impact of reduction of VAT on the Bahamas government Revenue. Impact of reduction in the value-added tax rate on Bahamas Government Revenue:

• -Firstly, it reduces value-added tax collection because of the rate cut.

• -Reduction in tax cuts may increase the sale of a specific category of the commodity than a normal trend. So that it will give a boost to transactions automatically. Overall value-added tax collection may surpass the earlier collection in a particular category.

• -Because of a boost in transactions or sales, employment generation takes place.

• -Ultimately employment generation increases the per capita income of the country.

• -Reduction of tax rate may attract new investors so effective utilization capital takes place.