Sunday 12 November 2017

GST tinkering due to Gujarat polls




  • GST Roll back of 177  items from 28% to 18% reflects their poor understanding of taxation matters by Modi, Jailtley & Co and their greediness to collect more and more taxes to fund their vanity schemes. 
  • Jaitley was adamant and refused to listen to pleadings of many people to be fair in tax rates.
  • What made Modi & Jaitley brought their knees is the restlessness among Gujarati traders who threatened to agitate for BJP's defeat in the ensuing assembly elections.
  • This threat was confirmed to BJP in their internal survey, two months ago, which predicted winning seats as low as 50 unless some thing is done.
  • Rising popularity of Rahul Gandhi in social media, intelligentsia and masses is another reason. Modi is aware that he lost at least 15% popularity so far. One out of three turning against him is enough for his disaster in 2019 elections.
  • It doesn't require more than common sense to say that GST at 28% in these years of globalisation and is highest anywhere in the world.
  • So this is India and here crying babies only get the milk.

No policy is a good policy which gets tinkered often. It only reflects rulers greediness, poor understanding, distorted thinking, gross unpreparedness and closed-mindness of policy makers. Modi and Jaitley opened their mind now only when GST in its original format proved disastrous and since overhaul is beyond their comprehension, they started tinkering which will never give them desired results. Anyways, GST reduction is sensible and relieves burden on people & traders but what will be its ultimate impact will be known after some months. Modi is learning to bow to people, who are his masters. Had he done the similar thing during demonetisation 1st or 2nd week, he would have been hailed as statesman too.


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