Tota:
GST is being passed ! A great Reform since 1991 !
Myna:
Since 1950, actually?
Tota:
Why 1950?
Myna:
Because the states which had agreed on a constitution to form India will lose
some of
their autonomy and independence.
Tota:
Why do you say that?
Myna: I
don`t say it. See for yourself … GST is a Constitutional amendment, requiring
2/3
votes in Parliament, no? It is not just another law.
Tota: Hm
… But a consensus has been reached !
Myna:
This consensus was always there. The long haggling was only to take political
credit.
Tota:
OK. But it will benefit the nation, no?
Myna: It
will benefit the seths, sure, but not the people.
Tota:
Why do you say that? Isn`t unifying the taxes and also the tax rates across the
different
states a good idea?
Myna: It
probably is …
Tota:
And scores of different check points for different taxes at the inter-state
borders
will be
removed. Less delays, less corruption … Isn`t it for the good?
Myna: It
probably is …
Tota:
And won`t the avoidance of double/triple taxation from the successive stages of
production
-- to wholesale – to retail sale reduce the total tax for the consumer?
Myna:
For those who keep “number ek” accounts it certainly will. For the “number do”
walas …
Tota:
OK, OK … But won`t the buying public pay less now?
Myna:
No.
Tota:
Why not?
Myna:
Because the seths, at each stage, will not reduce the prices to pass on the tax
reduction.
Tota: ?
Myna:
Yes. Prices are high not only due to high taxes but also due to high profits.
No?
Tota: Oh
… So what will be achieved by GST?
Myna:
Govt`s tax revenues will decrease; seth`s profits will increase; people will
suffer
as
usual.
Tota: Hm
… But at least the potential will be created to pass on the benefit to the
people…
No?
Myna:
Yes. And many such potentials were created since 1947. They have remained …
well … potential.
Tota: ?
Myna:
No?
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