“VAT & GST: An Ernst & Young Guide on Burdens for Multinational Companies”, is a new guide line written by Ernst & Young that explains the great impact that further taxes have on companies.
This book explains the fact that VTA tax has been introduced in countries in which it did not exist, but has also increased significantly in states that existed. The GST goods and services tax has also increased significantly, thus making harder and harder the possibility to sustenance of a profit by any small company.
The VTA tax was heavily increased, in some countries even by 6% leading the population of poorer countries with a diminished purchasing for goods economical power.
Not only the population has experienced very hard times into the economical crises, but also companies had to take some new strategies to sustain themselves. The firs one was reducing personnel, thus increasing the rate of unemployment. Also, reducing the purchase of new materials and equipments from other companies that ware providing goods for fabrication, has led those companies to fire up their employers. This is mainly an economical domino in which all companies crashed, and only the ones that had great sustenance have managed to be still on the market. The book also explains the rather harsh fact that increasing taxes had on the population, in every country, and also why smaller companies vanished while others maintained themselves and even got an economical growth. Some companies ware even forced by the government to go bankrupted, due to the creation of new taxes, and in countries where the government did not calculate well the effects on taxes, many companies have perished, even if they ware leaders on the national market. By diminishing the economical power of the populations to buy, companies had no longer how to give their goods and services, thus, the economy has collide even further.