Because VAT is the only reasonable way to tax businesses, and businesses are businesses regardless of industry and will try their hardest to get out of paying tax.
The reason for this trial is to test the theory that removing tax will lower the price of the good, not just the cost, in the hopes that the purchaser will have the right to survive.
It's not going to work, because that's not how economics works, but hey, humans need to constantly rediscover basic facts every few years I guess.
Illustrious_Emu2007 t1_j1x02tg wrote
Reply to comment by theassassintherapist in Spain scraps VAT on basic food to help with rising cost of living by PauloPatricio
Because VAT is the only reasonable way to tax businesses, and businesses are businesses regardless of industry and will try their hardest to get out of paying tax.
The reason for this trial is to test the theory that removing tax will lower the price of the good, not just the cost, in the hopes that the purchaser will have the right to survive.
It's not going to work, because that's not how economics works, but hey, humans need to constantly rediscover basic facts every few years I guess.