A $100 'retail item' would cost $123.Jonestown, you've been hoodwinked. The 23% rate is what's known as the "tax inclusive" rate. It's the percentage of the gross payment including tax that is paid in tax. The rate in sales tax terms is 29.87%.
Now, let's say the government raises the NRST from 23% to 26% -- a whopping 13% tax increase! Your retail price goes from $100 to $103 to accomodate the tax.
Bull. -- A $100 'retail item' would then cost $126.00, tax included.
That 3% increase looks like a $3.00 increase [per hundred] to most rational people paulsen..
Why are you different?
409 jones
Your Nightmare opines:
Jonestown, you've been hoodwinked. The 23% rate is what's known as the "tax inclusive" rate. It's the percentage of the gross payment including tax that is paid in tax. The rate in sales tax terms is 29.87%.
A 23% tax on a $100 item would be 23 dollars. Play semantic/mathematical games with that fact as you like, but the tax remains at $23.
So a $100 item would have an additional $29.87 in taxes added to it for a total of $129.87. And $29.87 is 23% of $129.87 so these guys claim you are paying a 23% sales tax. Clever, huh?
No, not clever, that idea is idiotic. $23.00 is a 23% tax on the selling price of 100 dollars.
If the merchant charges $129.87, he is charging a 29.87% sales tax on a $100 sale.
Get some help on arithmetic, --- but don't ask paulsen.