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The increase in VAT is a source of great worry for small and medium sized businesses. This was revealed in a survey conducted by the Federation of Small Businesses. More than 70% of the respondents said that they expected a negative impact on their business due to the increase in tax. The government has time and again spoken of its support to the SME industry. The FSB hopes that it will concrete steps to help small businesses during this difficult phase. It is suggested that in instances where regulation can be changed or removed it should be done to help SMEs.
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