10 Countries Where The GST Seems To Be Irrelevant And It Looks Like The Government Sucks The Blood Of The Common Man
10 countries where the GST seems to be irrelevant and looks like the government is sucking the blood of the common man.
GST (Good Service Tax) is a destination-based tiered tax levied on all purchases. It is an indirect tax that applies across India, replacing the multiple cascading taxes imposed by the central and state governments. The GST is regulated by the GST Board, whose chairman is India’s Minister of Finance. Under the GST, different tax rates will apply to goods and services at 0%, 5%, 12%, 18% and 28%. The tax on brought, precious and semi-precious stones is 0.25% and gold is taxed at 3%. On July 1, 2017, the GST structure in India changed. The GST will revolutionize the way Indians pay their taxes, but it is a tax reform that most Indians do not fully understand.
To ensure that revenues generated by central and state governments remain constant, nearly 60% of all goods subject to GST fall into the 18% or 28% tax bracket. While unpackaged cereals and milk are zero-rated, hair oil, shampoos, deodorants and even chocolates are taxed at 28%.
The impact of the GST on the economy:
The GST is considered a single tax system, but in reality it is a double tax system because state and central will collect separate taxes on a single sales and services transaction. Many product taxes have been increased, increasing their costs. The hardest hit industries are dairy, textiles, IT, telecommunications, etc., and the cost of jewelry and cellphones has also increased.
It has already been implemented in around 140 countries, including Australia, Germany, Japan and Pakistan. India has one of the most stable economies in the world, and our ability to adapt to major economic changes has proven to be quite good.
According to some economists, the GST in India would have a negative effect on the property market. This would reduce demand by around 12% while increasing new home costs by up to 8%.
Real estate could have a negative effect; according to some economists, this will increase the price of new homes by up to 8% and reduce demand by almost 12%.
Dealers who used to only pay VAT to avoid paying other taxes but now have to pay may become uneasy.
Some experts claim that the terms “CGST” (Central GST), “SGST” (State GST) and “CST” (Value Added Tax) are simply new names for the same taxes. Therefore, there is no significant decrease in the number of tax layers.
Only a 4% tax is currently applied to certain retail products. After the tax, clothes and accessories could cost more.
Speaking of costs, the tax has also dramatically increased hiring costs for small businesses and accounting firms. Since many people are still unfamiliar with tax and accounting firms need to hire new staff with tax training, some small businesses are filing their own taxes, which has become problematic.
In addition, the implementation of the new compliant software results in increased training costs for current employees.
The tax will have a direct impact on all sectors of the economy, including large, medium and small units, intermediaries, importers, exporters, traders, professionals and consumers. The Goods and Services Tax (GST), one of India’s most significant tax reforms, is expected to boost overall growth by integrating state economies.
GST will unify the Indian market and strengthen the economy, but just like a coin has two sides, the implementation of GST will have both positive and negative effects on a country. It is a way to reduce the amount of “black money” if we ignore the disadvantages and focus on the advantages. GST is currently experiencing some minor issues, but over time we will be able to see the bigger picture, and this will undoubtedly lead to greater economic integration.
Three different taxes on goods and services are applicable. As following:
CGST: where the central government will collect the money
The following would be the tax structure of the GST-
In-state sales: GST plus SGST.
IGST: Sale to another state.
GST around the world
The central and state governments each have the power to levy taxes under the dual GST structure.
India has the highest tax rate of all countries that have adopted GST.
In France, there are four different VAT rates: Since its initial introduction in 1954, the following percentages have been achieved: 2.1%, 5.5%, 10% and 20%
2. The UK
UK VAT has been set at 20% since 2011.
Ukraine has two VAT rates: 20% for most goods and services and 7% mainly for medicines.
4. New Zealand
The GST was first introduced in New Zealand in 1986 at a rate of 10%, and in 2010 it was increased to 15%.
The rate was first introduced in 2000 and is currently 10%.
Unless otherwise specified, most goods and services in Vietnam are subject to three VAT rates of 0%, 5% and 10%.
The GST was introduced in 1994 at a rate of 3% and increased to 7% in 2007.
The GST rate in Malaysia was introduced in 2015 and is set at 6%.
The GST, which applies to supplies of goods or services and covers most products, is set at 5%. A 15% harmonized sales tax is also levied in certain Canadian provinces.
10. Ivory Coast
People give 60% of their income to the government.
Why does the government seem to be sucking ordinary people’s blood?
On Friday, Congress Leader Navjot Singh Sidhu compared the Prime Minister Narendra Modi Administration of the NDA to a “leech” collecting blood from the general population.
Speaking to reporters at Rajiv Bhawan, the state headquarters of the Congress, Sidhu added that the Centre’s incorrect policies had caused major losses for public sector businesses and banks over the past five years.
The Modi administration has become a leech that feeds on the blood of the average person. Ordinary people find it difficult to stand up,” said the ex-cricketer-turned-politician. As public sector companies and banks fail under Modi governmentthe profits of a select few capitalists have increased, he claimed.
He added that despite high international crude prices, fuel prices were low under the UPA government led by Manmohan Singh and the Center had increased excise duties on petrol and diesel 16 times over the previous five years.
He claimed that despite low international rates, domestic fuel prices were sky high under Prime Minister Modi’s administration.
The price of essential drugs has increased by 10%. Commodities like cement, steel, cooking oil and others are now much more expensive. Massive inflation therefore has a negative effect on the daily life of the typical person. This, they claimed, is Modi’s contribution.
The main tactic used by BJP diverting attention is tantamount to raising sensitive social issues and stirring up feelings of hatred in people, according to Siddaramaiah. He exclaimed that the BJP government was misleading people to divert their attention from issues such as rising gas prices, unemployment of people, rising of different commodities, etc. Before introducing the new currency, MSMEs provided about 11 million jobs. They pointed out that there are only 2.5 crores of jobs left now and wondered what had become of the promise that under Modi’s rule, two crores of jobs would be created every year.
Law and order are essential for investment, job creation and growth. According to Siddaramaiah, the continued decline of law and order in the state has cost billions of dollars in assets. The topic of oil company bond purchases is totally irrelevant, and the data is fabricated to mislead the public. According to him, the UPA had issued bonds for around Rs 2.2 lakh crore, but the additional duty income was around Rs 26 lakh crore.
There is no justification for raising taxes due to the covid pandemic. Chief Minister Basavaraj Bommai, Covid has received investments totaling Rs 15,000 crore over the past two years. Rs 15,000 crore is irrelevant compared to the size of our budget. Kerala invested around Rs 40,000 crore in Covid in the first two years. Kerala has a much smaller budget than ours. Moreover, the BJP failed to increase capital investment. No houses have been built and the infrastructure is still poor.
Edited by Prakriti Arora