Very interesting idea being seeded by BJP, The abolition of Income Tax and Service Tax may figure prominently on the agenda of the BJP for the 2014 Lok Sabha polls
Very interesting idea being seeded by BJP, not an official endorsements though. Lots of practical challenges, implementation will be the key hurdle. The article also talks radical changes in “petro-economics” bringing taxation on petroleum products in India at par with international standards.
1. Income Tax has poor track record in India, lots of defaulters, among 180 countries, India is ranked at 138 in terms of tax administration.
2. More money to consumers will result into more spendings
3. The Finances can me be managed through indirect tax, at least consumer is spending the way they want
4. Lots of time saving for people like me and removes the possibility of being uninformed corrupt
The Flip Side:
1. As per the recommendations, Bank Transaction Tax will be levied, this will lead to corruption and money laundering. We need to strengthen the banking mechanism first.
2. Indirect tax should also be controlled, with service tax we have seen multiple layers of taxes.