Cutting VAT will not stimulate the economy. That's what the loud mouth populists believe...but cutting taxes on income are better at stimulating production activities.

       
       

Are you proposing cutting taxes for low income only?  Cutting VAT is supposed to help poor people since it is a regressive tax.  Maybe there is a balance between improving production activities and improving the standard of living of poor people. I understand you will say that improving productivity will improve all lives.

Virtually ALL the items poor people consume are already zero rated, so it is not as regressive as we believe. You can achieve the same for poor people without cutting the VAT. As a matter of fact, they need to make sure more businesses are collecting the VAT.

But also making sure that all payments are made to the government.

Dah ah wan adda story.