Economic Impact of COVID-19

“In 2018 Saudi Arabia imposed a Value-Added Tax (VAT) on the supply of goods and services at a standard rate of 5%. But in July 2020 Saudi Arabia increased the standard rate of VAT from 5% to 15% (Economic Impact of COVID-19)"

Discuss the welfare effects of the VAT reform and its implications for business and taxpayers with 500-700 words.

Sample Solution