Certain products or services are exempt from tax, typically because they are considered essential. These often include basic food items, sanitary products, and animal food.
Governments choose to exempt these goods and services to make them more affordable for the general public, particularly lower-income households.
By not applying tax to necessities, the aim is to reduce the financial burden on consumers while still collecting revenue from non-essential items.
Exemptions vary by country, depending on local economic policies and priorities.