New Delhi, 22 September (IANS) political analyst Tehsen Poonwallah on Monday welcomed the next generation reforms in the Goods and Services Tax (GST), called it a “positive but small first step” for comprehensive tax and economic improvement. He also suggested that India has the ability to become the second largest economy in the world, but for this, it will have to increase by 10–11 percent.
Speaking on the occasion of Navratri, Poonwale praised the intention behind the announcement, but also raised serious concerns about structural flaws within the current system.
“First, Navratri greetings for all my fellow Indians. We welcome what the Prime Minister has said. This is the first step, a small step. Under GST nationalization, there are still too much tax slabs. I do not understand why 40 percent GST is a slab. If someone earns money and wants to spend anything, it is too much.
He was particularly important how GST is being administered by bureaucracy.
“The most important issue is that GST has now become a tool of forced recovery. The officials managing GST are using it from people, to withdraw money from traders. It has become a tool for collection rather than improvement.”
Whether GST 2.0 set India on the way to become an economic superpower, Poonwal insisted that there is a need for extensive and boulder reforms.
“India will progress in the next 20 years. But we can get a 10–11 percent increase, if we improve more. First, we have to reduce the number of bureaucrats by 50 percent.”
He argued for a change as to how industrialists are considered in public discourse:
“We should stop treating industrialists like enemies. They are part of the country. If they invest in India, only jobs can be made and the nation can progress. They should be seen as essential stakeholders in the future of the country.”
He also raised important questions about the government’s policy on emerging areas.
“What is India’s crypto policy? Is it legal or illegal? If it is legal, how can anyone be sued for it? And if it is illegal, how is the government collecting tax on it? There should be a clear policy on AI and Fintech. A forward roadmap is necessary.”
“Only then India can become the second largest economy in the world in 15-20 years. It will not be with an increase of 6-7 percent; India should get 10-11 percent GDP growth for such changes.”
The next general GST reforms rolled out this week, simplified the tax structure in a low slab and reduced the tax burden on more than 375 items.
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