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There are several shades to politics one can draw, from an economic perspective to analyse the relevance of a stand point – Is Modi the best India have seen? Well i would want to present my ‘Key analytical pointers’ from a politically neutral perspective to indicate how it benefits the common man & take aways for him to keep in mind.
Key Economic Policies Introduced by MODI Government:
- Introduction of indirect taxation system through GST.
- Implementation of De-Monetisation – Pro’s & Con’s.
- Passage of the Insolvency and Bankruptcy Code, 2016.
- Liberalisation of India’s foreign direct investment (FDI) regime & Ease of Doing Business Ranking.
- Are the Jobs really getting created?
Let’s Analyse the policies in details:
- Introduction of indirect taxation system through GST. Is this GST really helpful for common man or just corporates?
Well, you all know about GST – i wish to analyse – Is GST really helpful for common man or just corporates?
From an economic perspective – GST as a tax policy is an extremely diligent tool for driving tax governance in any country, as most tax loopholes can be fixed & even if not – it can still give authorities enough directions to plug them. Well, i am not writing anything to discuss that.. My objective in writing this is – to get some clarity in people’s mind – if GST is helpful to common man in the long run.
Well, common man in India has accepted one thing for sure – its common for common man to be taken for a ride, when it comes to policy making in India. As per tax laws – you pay taxes for all that you either buy or sell – when you don’t pay taxes, that money becomes eligible to be called “Black Money”. To tap “Black Money”, government should tap “Black Market”. And for government to tap “Black Market”, they should should have a fair assessment of what is the market? You must understand the fact that – CORRUPTION cannot be STOPPED, it can only be CONTAINED only when it is assessed the right way.
GST is one of those tools that helps government to have an first hand assessment of market general market condition – WHAT Products are getting manufactured – WHICH products are getting distributed – WHAT products are really sold – WHICH products is really reaching end customers. Everybody pays some tax – whether you are Manufacturer, Distributor, Retailer or an end customer & accordingly you can claim tax credits. By analysing this government will get to know – what is the real market mix & what needs to be addressed & various ways it can be addressed.
You must understand the fact that – CORRUPTION cannot be STOPPED, it can only be CONTAINED only when it is assessed the right way. GST is one such assessment tool, through which government – if it gets wilful – it can bring in regulations to benefit the customers/common man by reducing taxes on products on which really matters. Government can understand what you are buying – how much is its real cost – how much tax it can reduce to benefit you in which way.
Yes, this can help corporates & indeed this will benefit end consumers as well. A clear tax structure can pave way for newer players to enter market – so when newer quality players enter the market – competition gives way for better products, better quality & certainly better discounts which can benefit end customer – which thereby kills monopolistic practices of fewer players in the market.
– Article by Suman Adithya Rao (SEBI Certified Research Analyst, Management Graduate in Entrepreneurship & Small Business Management)
Click Next >> Analysing Modi Government, Pointer 2 – Implementation of De-Monetisation – Pro’s & Con’s