That's from the above article. Most of them have bribed themselves to non-competitiveness. We are not able to compete with China or Sri Lanka or Thailand in Chennai. So, where is the question of us exporting and defeating them outside? Most of this is corruption-driven. And another nugget. They say the government is going to get more revenue. What does it mean? You and I are going to pay more into the hands of the government. Whether the tax rates come down or not, we will be down in our disposable income.
The CAs are out to make jokes. No doubt we survived without GST for 65 years. We also survived without electricity, water, good roads, TV, Mobile phones and INTERNET. Do these CAs want to recall those days. So be it!! Long live our Republic and these Economists!!
There ca be multi layered tax. Service tax has to come down to 12 percent. manufacturing tax also needs to be 18 and sales Tax not more than 15 percent. The end user is going to pay for everything. Tata motors are not going to pay from their Pockets. There need not be big issue
The tribe of Chartered accountants and auditors who thrive on maze of taxes and hold companies to ransom before each year end, are the people who lose if taxation is simplified ! Period.
The CAs, lawyers and corrupt and confusing bureaucrats together have a deadly grip with the existing confusion and red tape, which will get loosened if taxation is simplified.
Mr M R Venkatesh probably has that intuition as a CA and is naturally defensive of the current system and will oppose any changes. He is pointing at the bureaucrats, the very same kind in the Govt, only to deflect attention.
One tax, reduces confusion. The tax might look optically higher and may even burn a larger, but one, hole in your pocket. But at least you would know who or what is burning that hole. Today, there are many small holes, another gets created soon as one is plugged !
The richer western and some southern states which are producers and have consumer markets will benefit, so there is no case for a surcharge, the inter-state tax. They can make their own markets competitive or get greedy by imposing state-level taxes. So, Pondicherry, Dadra-Nagar haveli (DN) and Delhi registrations will stay popular, if states stay with Octrois and local body taxes.
Other states which thrive only on duties on alcohol, foreign or country made and trucks passing through them, will stay where they are
BUt what about RBI rate cuts despite spiralling high graph of inflation...i think economic nirvana as saidhas been assumed to be achieved through rate cuts.
Much is said about GST..rosy pinky pictures are being painted. Earlier when congress did it BJP opposed it now Congress opposing it, question is whether state level VAT will be continued because it is a domain of the state governments secondly how the people will be benefitted, service tax and its applicability as made to include all services has benefitted the govt. only to finance the extravagance of the ministers and the bureaucrats and their huge pay hikes in this poor country ...and this highly regressive tax is causing burden on even poorest of poor. The way it has been made to increase from 10 to 12 and now 14 despite inclusion of all services to increase the tax payer base, exposes the claims of governance for masses.
Modi goes all out for bills. He makes such strong pitch that all his ministers are under pressure. This is what is the unseen growing intolerance.. Modi called CMs meet, made high pitch effort for land bill n went kaputh! Same he is doing for GST as if the country will come to stand still without it. Likely that GST will face the same fate!! Time Modi controls his tongue n emotions n walk even keel to achieve things in calm manner!!
It is high time ,someone goes into the plus and minus points of GST and have a discussion with the people(not in patrliament).Any discussion in Parliament is useless,because our elected representatives have a different agenda. We should implement a GST which should stand the test of time and which will bring down prices.Arun Jaitley is unfortunately only lawyer to evaluate all this!A top class economist must review this GST being implemented prior to implementation.
