Business And Markets

VAT Vacillation

Policy and decision makers need to tread with extra caution in wanting to reform, regulate or reinvent VAT policy and all that is ascribed to it
VAT Vacillation   VAT Vacillation

Pundits and economic experts looking closely at the key insurance sector are prone to ask one question: Why should the insurance industry be exempt from value added tax as some quarters have been demanding?
Over the months a debate is going on between fervent supporters and strong opponents of VAT, especially for the insurance industry. Subscribers to the latter school tend to believe that the nine percent VAT is untenable, a hindrance and has enough potential to hurt the industry as people become less inclined to buy insurance policy for themselves (life insurance), their cars, homes and businesses. 
In their view VAT has another major minus in that it tends to undermine the socio-economic safety net. It needs mention that large sections of Iranian society are averse to VAT and see it as a pain whenever they buy, sell, pay for goods and services or go to the eateries. 


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