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A tax is a fine for doing something right.
The income tax created more criminals than any other
single act of government ... Barry Goldwater
Collecting more taxes than is absolutely necessary
is legalized robbery ... Calvin Coolidge
Theoretically, GST is a very radical reform aimed at improving economy, ease of doing business, etc. But hurried implementation has many pit falls. GST undermines federal freedom of states guaranteed by constitution. Centre will become too strong and the states too weak. USA has not adopted GST not to undermine federal structure, spirit and autonomy of its states. Not good for India with massive population and diversity.
Changing trajectories needs considerable preparation, effort and time. Ignoring any of them is not only detrimental but also catastrophic. The hurriedly rolled out GST with just three months of transition, ignoring the complexities like deficient infrastructure, IT knowledge, creating awareness, training, grievance remedial processes, etc are likely to impact large number MSME exporters with exports share of 45% and could impact exports and economy. GDP likely to come down by few points during first year. While long term benefits are imagination & illusion, short term pain is guaranteed and could even pull down already ailing economy impacted by mindless demonetization, low growth, low inflation, stagnant consumption, high joblessness and distressed agriculture. GST is certain to impact informal sector further, which provides livelihood for 90% of people and already destroyed by demonetization.
A decade ago we were told VAT will resolve all incongruities and corruption that engulfed sales tax but see nothing happened. Tax policy is as good as it is administered, by authorities who are blatantly corrupt.