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This avoids downward pressure on exports and ultimately export derived revenue.
A VAT is an indirect tax, in that the tax is collected from someone who does not bear the entire cost of the tax.
VAT was invented by a French economist in 1954 as taxe sur la valeur ajoutee (TVA in French). Maurice Laure, joint director of the French tax authority, the Direction generale des impots, was first to introduce VAT with effect from 10 April 1954 for large businesses, and it was extended over time to all business sectors. In France, it is the most important source of state finance, accounting for approximately 45% of state revenues...
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