VAT is just a shitty tax mechanisim, ends up being regressive (people with less money pay a larger portion of income), and really shouldnt be used. Land value tax + carbon tax is much better, and has nice side benefits like encouraging housing development and walkability.
Whats a luxury item for purposes of VAT? You’ll be hung up forever on that.
For example cars:
VAT is just a shitty tax mechanisim, ends up being regressive (people with less money pay a larger portion of income), and really shouldnt be used. Land value tax + carbon tax is much better, and has nice side benefits like encouraging housing development and walkability.