Several studies suggest that the “revenue neutral” GST rate is between 6.2 percent and 15.3 percent, ie if we cut the core GST rate from 18 percent to 15 percent, and the luxury rate from 28 percent to 22 percent, the government should not lose any revenue. What is more, low taxes reduces the incentive to create a black economy, and a lot of compliance. M/S Modi and Sitarman should have gathered courage to take this measured risk.
But we will never know if we ever try!
In any case, GST is crying for repair.
Just read that India’s leading tax lawyer, Arvind Datar has written The Indian Express: “The deadliest defect in the functioning of the GST Council focuses on a single-brain focus on revenue maximization. No attempt is made to rationalize rates, cut in complex information and circulars, to examine arbitrary and exaggerated demands through show-causes notice and create a proper and fair appellate system.”
But in the end, if all these admissions are actually scared, then political ears are at risk, I can propose an insurance plan that can eliminate the revenue risk – and the magic word is “privatization”, so today’s budget has been tragically abandoned by the current governance.
Currently, the value of our listed public sector property is more than Rs 17 lakh crore.
It is a shame that instead of encouraging these benefits and returning the value to true owners, that is, you and I, the citizens of India, the government is pushing us deeply into the loan, a struggling BSNL in BSNL and Rs 2.75 lakh crore in BSNL and more than Rs 11,000 crore in Rennel, only in two examinations, in two examinations.
It should be closed.
India’s economy needs new ideas and bold works. A quick and effective start could be done with the risk -free initiatives given above. Alas!
