VAT increase

A VAT (Value-Added Tax) increase means the government is raising the percentage added to the price of goods and services at each stage of production and sale. This results in higher costs for consumers, as businesses pass on the additional tax. The purpose of increasing VAT is often to generate more revenue for public services or to reduce budget deficits. While consumers pay more when purchasing goods and services, the overall impact depends on how the government manages the additional revenue and whether exemptions or adjustments are made.