Reduce VAT on Tea from 15% to 5%
The current 15% VAT has unintentionally fuelled border smuggling and unreported factory-gate sales. A large share of production goes unrecorded — distorting production data, eroding government revenue, and creating unfair competition.
Our Recommendation
- Cut VAT on tea from 15% to 5% to improve transparency, lift tax compliance, and strengthen the formal tea market.