What Are The Effects of High Sales Tax On Businesses?

[Good-Person]

taxes are a very important part of finance and business. Sales taxes refer to the kind of taxes that are imposed by the government. Whenever you buy any kind of product or item, you tend to pay a fixed amount of tax for that. So, how do these high sales taxes affect the businesses? Do you think that have positive effects or negative effects on businesses?

 

[Kane]

If you look closely on how taxation actually works, the businesses do not actually pay the sales tax. It is the consumer who pay sales tax. The businesses charge sales taxes on the goods they sell and they pay the same amount to the government. When sales taxes are higher, consumer will stop buying, thus businesses will lose revenue.

 

[Good-Person]

If you look closely on how taxation actually works, the businesses do not actually pay the sales tax. It is the consumer who pay sales tax. The businesses charge sales taxes on the goods they sell and they pay the same amount to the government. When sales taxes are higher, consumer will stop buying, thus businesses will lose revenue.

sales taxes are quite high and this is why the prices of common commodities are increasing. This also includes prices of commodities such as rice, flour, oil, fuel, etc. However, the government mostly focuses on fuel and this creates a huge problem for general public.

 

[Frank]

taxes are a very important part of finance and business. Sales taxes refer to the kind of taxes that are imposed by the government. Whenever you buy any kind of product or item, you tend to pay a fixed amount of tax for that. So, how do these high sales taxes affect the businesses? Do you think that have positive effects or negative effects on businesses?

Sales taxes doesn't need to be necessarily high. If you are talking about when the government of a country decides to increase the tax, then it is going to make sales to drop. But when the sale taxes is moderate and there is a corresponding income by citizens to improve their purchase power, then it is no big deal.