Vat is anon-cumulative multi-stage system where tax is levied only on the net value i.e. tax on gross output minus tax on the cost of all materials used whereas in cumulative multi-stage system, the tax liability occurs at each stage in the course of production and distribution. This non-cumulative multi-stage system of tax under Value Added Tax(VAT) gives the possibility of knowing how much sales tax is paid on a product at each given point in the production or distribution processes. Prior to the introduction of VAT for calculating sales tax paid at each stage one has to depend entirely on how many stages the product itself, its components, and the equipments and services utilized have passed through. Thus VAT has simplified the process of taxation and also made it free of loopholes. For these reasons we should oppose the VAT.

But some people says we should not oppose the VAT, because it essentially means that tax is charged at the final stage, only when the value addition is done by the manufactures, the cost of raw material is not included while charging the tax. This low price allows the manufactures to compete at the international levels. VAT also helps in reduction of truck time and also controls the corruption. In case of sales tax, at each taxable point, the tax paid accumulates on the top of the tax levied-integration. Consequently, the cascading systems are not economically neutral in case of sales tax. The VAT can remove all these demerits of sales tax. So we should not oppose VAT.

The Vat is the effective system which can make the revenue collection of the state better leading to increased income for the government. Thus in my view it is better and more compact taxation structure system than the previous sales tax system. Once the VAT is implemented, the cascading effect of the existing indirect tax structure will be avoided, resulting in the benefits for both manufacturers and the consumers. we should not oppose the VAT. Thus is our view it is better and more compact taxation structure system than the previous sales tax system. So we should not oppose the VAT.