Value added tax between reality and hope In Under economic variables"A comparative study"

Taxes continue to be the main means for achieving the goals of the state, not only as one of the main sources of financing, but because they are closely related to economic and social conditions and develop with their development. The practical application of the general tax on sales in Egypt resulted in difficulties in addition to its inability to achieve its desired goals, given that the requirements of trade liberalization, the World Trade Organization, and economic blocs require a reduction in customs taxes. In addition, developing countries, in an attempt to cure their economic problems, increase development rates, and encourage domestic and foreign investments, decide many advantages and tax exemptions, which has a direct impact on the proceeds of income taxes. From here, there became an urgent need to impose value-added tax (VAT), which proved to be more effective and has a low operating cost, because it does not require great effort in limiting its container, defining its community, and limiting those charged with performing the tax (importers, producers, wholesalers, retailers, etc.). and service suppliers) is easier than counting the taxpayers on income, and it is collected by producers, the customs authority (for imported goods), wholesalers, retailers, and service suppliers on behalf of the tax administration, and it is considered less vulnerable to evasion, and helps in reducing excessive consumption of services, which is A major factor in controlling the government's current expenditures, and also contributing to finding an additional source of revenue.