VAT indirect tax. It does not affect the growth of business costs. It is imposed by the state on the price (costs + some profit) that it calculated initially. It's just that after selling its product at such a price, the company gives this share of the proceeds to the budget.
Well, I think it's clear why. The reason is the same budget deficit.
That is, it is the end consumer who will feel the increase in VAT in the form of having to pay more for the goods.
This means that an increase in the price of products may affect a decrease in demand from the population and indirectly cripple businesses due to a decrease in their sales volumes.
Well, an increase in inflation in the form of an increase in the price index goes without saying, which means an increase in the discount rate of the Central Bank, an increase in the price of loans and a decrease in business activity in the real sector.
It would seem that business costs due to VAT are not growing, but it will hit it the other way. Maybe even stronger.
