Originally Posted by kutulu

That is the fundamental flaw with a VAT system. As citizens of this country I believe that EVERYONE is required to make the "same" contribution to this running of the country. I don't think it would be fair for someone to decide that they don't want to pay taxes and then be legally able to do so by not buying any taxable items. The money that needs to be collected gets shifted to everyone else. What if everyone decided to buy as few taxable items as possible? Not only would it wreck the government's income generation but it would also destroy the economy because nobody is buying the taxable goods.

The whole system discourages consumption and that is not the way to have a healthy economy.