Rishirishi wrote:Labour market is growing at 1.3-1.5% not 2%.
They are probably thinking of raising GST rates to compensate for the coming IT tax changes. I think this is not the right time to tinker with GST rates. Better to curtail expenditure for at least a year. In India the govt is obsessed with govt led growth.
Borrowing more to maintain fiscal deficit targets is a bad idea as once you start going that route there is no end to it. We are not America or China who can live with it.
This is a difficult balancing act as govt mainly media-led is under pressure to do something quickly to fix growth. Formalization of economy is not going to yield results in a day. It will take sometime.
Taxation needs to be incread dramatically to invest in infrastructure, law and order, education and rural development.
Low tax only serve the rich. The notion that money "tricle down" is just a hoax. While villages see vegitables rot, becase of lack of roads, millions of Indians are taking foreign holidays. IT is PATHETIC. A tourist tax of Rs 25 000 should be put on each outbound flight.
We don’t need more taxes, but better implementation of existing taxes. I was in India recently for a family wedding (both groom and bride are Fauji children) and was close to the arrangements. The hotels where the wedding and engagement ceremonies were held - all four star hotels - were openly saying we will prepare a bill for 1/4th the actual cost of the ceremony and the rest is paid in cash with no bill. And willingly, we all agreed to this arrangement because who wants to pay unnecessary taxes. They did this by showing far fewer guests.
I thought a lot about this - how’s it possible that the local Sales Tax Deptt wouldn’t know that it’s very unlikely that just 50 people showed up to a wedding? They can easily demand to see the footage or pictures from the event. They aren’t stupid to not realize that a hotel is renting out 300 capacity hall consistently for 50 - 100 people events. While not absolving willing people like us from the blame, I wonder how much tax would we collect if we just ended some of these obvious leakages.