Why the new tax is a good idea

[sparklingway]

i think the writer is right.

lets assume the raw material to be iron ore... in the first stage it is brought out from some mine and therefore brining its value from zero to 100. 15% tax takes this price to 115.

in the next stage value addition of 20 takes place. 15% tax on it equals around 3. meaning now the price will be 115+20+3=138

in the final stage another 20 is added to the value. 15% tax on this added value would mean another 3. taking the final price at 138+20+3=161

total tax paid= 15+3+3= 21

pirce minus tax= 100+20+20=140

21 is around 15% of 140


meaning......... it doesnt matter if u charge the tax at the end or during different value added stages

Oh crap. I read the first numbers to be 158 and hence assumed wrong calculation. She did it the right way - tax on additional value. My fault. Apologies.

 

[HAIDER]

Sooner or later Pakistani will start paying tax, its not because they want too. Its because our politician lavish spending and foreign loan will bring the nation on the edge of black hole of loans.
Yesterdays news, Lahore had huge traffic problem, because whole city police was busy giving protection to PMs son's " dawat e walima'.....lolzz