To increase the tax burden on the people, to favour the corporate big capital over the small enterprenuers and to undermine whatever fiscal rights are granted to the states in the Indian Constitution, RSS-BJP Govt. has launched Good & Services Tax (GST) from July 1, 2017. GST has long been demanded by imperialist capital and has been on the wish list of Indian corporate. It represents one of the most cruel attacks on the people and the rights of the states.
Touted as the reform of indirect taxation in the country, GST has three types and several slabs. Besides several items like petroleum products and alcohol have been kept out of the purview of GST so that high taxes on them do not figure in the GST tax rates. Moreover some of the indirect taxes will still continue to be levied by different authorities.
GST would greatly increase the burden of indirect taxes which are paid by the common people. Already Indian Govt. receives two third of its tax revenue through indirect taxes while indirect taxes constitute only a third of tax revenues of the Govts. of developed capitalist countries. Tax GDP ratio in India compares favourably with these countries largely due to expenditure on social sectors in those countries while this is almost nominal in India.… Read More