The bad thing with the VAT system is that not all your normal tax goes into the right place. For example when you pay road tax that money supposed to put into road developments, transportation safety devices etc. But the government pays VAT as well as other taxes just like you. So that if the VAT is 17.5% that amount of road tax instantly goes into the 'other packet' of the government. Other taxes are the similar so that the income tax that all road workers has to pay goes back into the another packet and so on. All together that's a huge amount of money and that's why the governent do not always do what they should have to. Tamas On 06/09/06, Alan B. Pearce wrote: > > >On behalf of taxpayers everywhere, I object (strenuously > >even!) to the phrase "the beauty of VAT". > > While I would agree with the objection to the adjective "beauty" being > used > in this context, I would have to admit that the VAT/GST system is a better > method of taxation than the old sales tax methods. > > When GST was first introduced into NZ, I also thought it was an unwise > imposition, but as time went by I did grudgingly agree that the way NZ did > it, with an equal rate applied to everything, was the best way, and am > rather appalled at the umpteen different rates used in the UK/Europe, with > some items being classified 0 rated, others through political pressure > having lower rates than the full rate, and then the differing rates > between > countries in the common market area, makes a mockery of what is otherwise > (arguably) a fairer system. > > -- > http://www.piclist.com PIC/SX FAQ & list archive > View/change your membership options at > http://mailman.mit.edu/mailman/listinfo/piclist > -- unPIC -- The PIC Disassembler http://unpic.sourceforge.net -- http://www.piclist.com PIC/SX FAQ & list archive View/change your membership options at http://mailman.mit.edu/mailman/listinfo/piclist