ABSTRACT
The value-added tax is imposed on the value that a business firm adds to the goods and services that it purchases from other firms. The retail sales tax, like the turnover tax and the general value-added tax, permits the inclusion of all services, in contrast to taxes on manufacturers or wholesalers. The value-added tax is the latest and probably the final stage in a historical development of general sales taxation at the national level that has eliminated the uneven impact of the turnover tax and the manufacturers' and wholesalers' sales taxes. The retail sales tax possesses the breadth of the turnover tax without its discrimination against early-stage value added and non-integration. The differential incidence of the retail sales tax and the value-added tax, consumption type, is nil, because both taxes have the same aggregate base.
