What will be the effect on the daily living for an average citizen of that particular country? Taking into consideration the contribution of informal business being one of the affordable option to majority of the citizens.On the other hand the costs are allocated per product will definitely involved taxes levied to determine the mark up making all goods and service unaffordable.
#developing_countries
You should not tax to silence private initiative, saving and investment.
Tax system must incorporate or consider all the cannons of a good taxation so as not discourage private initiative and productivity.
Shrinking revenue from traditional sources is driving governments of many developing countries to expand the tax net to include informal businesses. This can be counterproductive as already observed by some commentators. My advice is that such governments should muster the political will to plug all avenues of leakage in the existing tax system often occasioned by monumental corruption and tax evasion. Informal businesses remain the backbone of many economies and should be spared the agony of avoidable tax imposition.
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