07 FEB,2021 | MEDC
Compliance is a drag on productivity and also the ease of living. The amount of effort and difficulty in addressing compliance issues is directly proportional to the size of the business enterprise, and it is a characteristic of overregulated societies. Outdated requirements, cumbersome procedures, and ambiguity in rules and regulations, are the key issues faced in non-tax related compliance. While policymakers have made commendable efforts over the years to reduce the burden of compliance, they are not enough, and the system still remains complicated enough to hinder our global competitiveness. While the government needs to resist the urge to lift the lockdown early, it should simultaneously focus on a digital transformation of the economy, which will enhance productivity while maintaining social distancing. Scale is an obvious factor adding complexity to this alteration, but we have no choice. Our manufacturing sector, in particular, faces debilitating compliance costs, and we will never be able to challenge China’s growing economic clout unless we focus on rationalizing our compliance requirements.
*Photo Credit: Google