The general VAT will go from 18% to 21% starting September 1. Business owners fear tha the measure will have a negative impact on consumption, which is at dangerous lows right now, and they are trying to figure out how to address the change.
Profitable companies will see their margins drop as they eat the tax increase, hoping to appease their clients and keep sales afloat. This decision has been adopted by many companies in textiles, technology, restoration, food, transporation and travel. Other companies are considering sharing the increased cost of doing business with consumers and the rest have no alternative but to raise prices.
Overall, consumers will appreciate the companies that make an effort to soften the effect of soon-to-increase prices.
