I don't know who you're complaining about. Me, Steam or Itch.
This is what Steam says on checkout for most of the EU and as far as I can tell, every country with VAT outside of the US.
158 days ago (+1)(-2)
158 days ago(-1)
So your logic for not being allowed to charge the same price on itch and steam is invalid. VAT is not applicable to most customers.
158 days ago(+1)(-2)
I don't know why you're arguing from a place of complete ignorance. Read the section on rules, number 4 and then please tell me the magic spell I can cast to make the world you want a reality.
158 days ago(+2)(-1)
Since you asked me, I don't see the issue with the rule. Steam does not want you to charge a higher price than what is offered on other sites. You specifically stated that itch will add tax/vac to the price, but Steam will not. So if you make the prices $4.99 on both sites than itch may be a higher price, which is exactly what Steam wants. Steam gets the lower price. No magic spell needed.