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A tax on goods and services sold domestically for consumption is known as the goods and services tax, or GST. The tax is passed to the government by the vendor and is included in the final price, which customers pay at the point of sale. Generally, a country levies the GST at a single rate. Because GST lowers tax evasion and streamlines the tax system, governments favor it. Lower income people are said to be burdened more by the GST than higher income ones. Value-added taxes (VATs) such as the goods and services tax (GST) are imposed on the majority of goods and services that are sold for domestic use. Although customers pay the GST, the companies that sell the goods and services are the ones who send it to the government. However, critics point out that the GST is a regressive tax because it may disproportionately affect those whose self-reported income is in the lowest and medium income levels.
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