VAT Included Price = CIF + (CIF x 1.1 + current taxes) x 18% + current taxes

️Let's take a solar panel as an example. Now It's a 0% tax import, from January, 18% VAT will be imposed on it.
If a solar panel's CIF value (landing cost) is Rs. 100,000, the new price due to this VAT change will not be 100,000 + 100,000 x 18% = Rs. 118,000.
It will be: 100,000 + (100,000 + 100,000 x 10%) x 18% = Rs. 119,800

️ So the effective VAT rate for this product is 19.8%, not 18%.

️ Depending on the other taxes (General, PAL, SCL, Excise, etc) imposed on a good, the effective VAT rate will be a few percentage points (1%-2%) higher than 18%