Wise spending assures financial security and peace of mind. The effect of VAT on a common man entirely depends on one’s lifestyle. There will be a minimal rise in the cost of living depending on the lifestyle and spending preferences of the individual. If an individual perseveres with purchasing things that are taxable and keeps on an expensive lifestyle, the expenditure is supposed to increase. But if one spends more on items that are not attracted by VAT, the cost of living of the individual will be implausible to have any significant increase.
The Sectors that VAT affects the common man
Sectors like high-end goods, latest electronic devices, smartphones, cars, jewelry, watches, eating out, entertainments and luxury items will attract a VAT rate of 5%.
If you are shopaholic, you have to spend more on clothes, accessories, shoes, etc. as 5%VAT will be charged on these items. Financial services like bank charges, electronic transfers, etc. will also attract the same 5% VAT
