Why rich farmers are not imposed VAT tax?
Agriculture as such is not a manufacturing activity. Nor it is an economic activity involving supply of goods and services as such. Commercial trading of agricultural produce will, unless exempted, be covered under VAT. Moreover, VAT being an expenditure tax is also borne by the farmers’ community when they purchase VAT-taxed goods and services either for agricultural purposes or for their personal consumption. The more they spend, the more they pay VAT on their consumption.
