Doc Summary
An increase in VAT dependency in the proposed budget is feared to fuel price hikes eroding further the consumption capacity of a large bracket of people in times of high inflation.
In the proposed budget, the government seeks to collect one third of its total annual revenue from VAT, raising the target to 33.8% from 32.8% from the outgoing financial year.
In so doing, the finance minister has axed most tax exemptions, expanded and restructured the VAT net to rake in more money to reduce budget deficit and fight inflation.
Income tax, the other major source of revenue, has been given a 32.5% target, from 30.7% in the outgoing year.
