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This canon is integrated in the provisions that are deemed favourable to the low income earners. Most VAT legislations entrench provisions for exempted and zero rated items. Most basic food items are zero rated and certain services are exempted from taxation. This makes it possible for low-income earners to afford them. They usually include basic commodities. This is meant to leverage the poor and thereby provide an equitable tax system. Other legislations provide for tax relief especially where there would be hardship or inequity in the recovery of that tax.

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11y ago

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