There are some rhetorical questions raised and lot of goal shifting around. Let's try to address one at a time:manjgu wrote:aeshyam ...will khakra be raw or processed? though i agree with u that a simpler tax regime is required.. raw/processed is a good way to define. while I applaud the Govt for GST...there is a perception problem...
a) the aam janta thinks tax rates have increased ( rightly or wrongly) since one big item as GST comes in the bill ..which was not so earlier. this is one aspect govt should address ..show taxes have reduced not increased
b) when generally people are paying tazes there is a expectation that the tax money will be used for their welfare ..things like improved schools, hospitals, roads, drainage. But this never happens and so the motivation to do wrong things. there should be perceptible improvement in the services offered to common citizens...
c) a case in point is pollution cess being collected from trucks entering delhi...crores have been collected but not spent on controlling pollution.
Khakra is a processed food item., so from value addition perspective it needs to be taxed. At the same time if all food items were to be taken as non-taxed then it will not be taxed., so what will you do with cold drinks and burgers and chips and popcorns? Tax-free as food items or taxable as value add? And what is wrong in taxing processed food items? Anyway some beverages like fanta/cola are not food but lassi is! So taxing a non-food-item-food-item like fanta/cola is actually a good thing.
On item a) whatever the GOI gives the number., it will be disputed. Best is for GOI to concentrate on getting GST widened and rationalization of taxes. And smoothen out GST processes. Rest will take care of itself. If aam-junta is so daft, then they are welcome to elect Pappu.
On item b) Are you saying that everybody was paying taxes and still past GOI breached their trust or you are saying that they are not paying earlier but are now paying but the current GOI is breaching their trust? Of course it takes years to improve school and there is as much state govt. responsibility as much as central. Coming to "perceptible improvement in the services"., I think there are several if you just care to see. If you do not want to see., then that is a different problem. It is not GOI's problem though.
On item c) this is a classic case of goalpost shifting. The pollution cess goes to the Delhi state government. For that you need to ask via RTI Delhi State Govt on where the funds are currently allocated.