apples and oranges - my plan exempts the bare necessities: food, rent, and used clothing...but if someone who is poor wants an XBox, then they're going to pay the full 9% VAT…but if you are poor and frugal, you can avoid paying VAT almost entirely by buying only exempted items. What about transportation? I think the typical poor spends about 30% of his income on transportation. (I always heard it described as 30-30-30-10 - 30 each on transport, housing, and food, and the final 10 percent for a gun and a funeral).