Consumption Tax

A consumption tax is essentially a tax on the purchase of a good or service. It may take different forms such as sales taxes, tariffs, excise or other taxes on consumed goods and services. It has the distinct feature of not penalizing savings unlike income taxes. Consumption tax is charged in different forms in several…

ANY country that wants to achieve  development must take a second look at how much revenue it generates from taxes, especially consumption taxes. Such taxes are charged on the purchase of goods or services, with rates varying from one country to the other.

Statistics showed that in Canada, consumption tax rates range from zero to 10 per cent along with the federally applied goods and services tax of five per cent just like Nigeria’s Value Added Tax (VAT).

READ MORE