04 JUL,2021 | MEDC
Four years after its eventful launch, GST remains a work in progress. Policymakers need to focus primarily on tax collection, and enlargement of the base. Too few Indians still pay too much to support an unacceptably large section of society outside the taxable net. The GST Council needs to immediately rationalize rates to improve efficiency, boost compliance, and enhance tax collection. Centre-state cooperation should also remain high on the policy agenda for GST to maximize its efficacy. With Covid further compromising India’s fiscal position, we cannot afford a sub-standard tax regime. No doubt, GST is a (long overdue) step in the right direction, but there is still much scope for improvement. In this pivotal moment, we count on (an improvised) GST to help revive our economy.
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