It’s not just that, but the sales tax is generally added at every level of the supply chain—from raw materials to wholesaler, distributor to retailer and consumer. Look back farther at the raw materials and there are generally several layers of the tax already in that as well. It’s a VAT on more than just the ‘VA’.
the sales tax is generally added at every level of the supply chainfrom raw materials to wholesaler, distributor to retailer and consumer
So that is why people will buy finished products from abroad to pay this tax fewer times.