Small Business Tax That Grows Up: VAT Thresholds, Broad Bases, and Digital Simplicity
Getting small-business taxation right is one of the fastest ways to boost formalization, investment, and productivity. Two levers matter most in consumption taxes: a broad base and a sensible VAT (or sales tax) registration threshold. Lower, tighter thresholds reduce distortions between firms; broader bases (a higher VAT Revenue Ratio) let governments keep rates lower with...


