As what RBI says, taxation in India is becoming unmanageable with possibly less credible features… The indirect tax needs to be put end else then things would go far worse…. The current income measures more than what it shouldn’t be over the current expenditure… So this can be a pivoting factor for higher indirect taxation…
The previous financial year was good at indirect taxes showing a neater sweep…. The collection number was estimated to Rs. 3.42 trillion with a significant growth of 40%... There were fair exemptions that year…
The hiking price of the fuel makes it to considerably lower the indirect tax and what is direct is that if price increases the stress to lower taxes on fuel could eventually come up… However taxes are reduced, enabling them in other ways is really easy…
Fuel tops the central excise tax collection with a 48-61 % and this would potentially continue this year if prices keep rising with no limit…
If prices of fuel go up, all it would push is the necessity and the importance of itself in the share markets… furthermore with a larger increase in the indirect taxes like customs and duty, people never fathom the mounting hike… With added inflation, another stronger feasibility crops to promote the price hike… India is on the top with high indirect taxes on a comparative basis with Nepal, 18%; and Sri Lanka, 9% and Pakistan 24 %...
All the government needs to do is a makeover and break off to the three taxes… It should significantly consider replacing these with the GST or the Goods and Service Tax that could eliminate indirect and unfair levying… If the three taxes continue to exist, then all India should be doing is to face an endangering situation and a weaker economy…
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