Exemptions, which are supposed to be pro-poor, should be replaced by direct benefit transfer
GST will be a "game-changer" as both the Centre and State governments will sacrifice their fiscal autonomy in favour of the new tax
Its economic efficiency and simplicity are diluted and it contains the most toxic sections from the legacy laws of the Centre and states
The world over, the principal objectives of tax reform are promotion of investment and economic growth, efficiency and simplicity
The panel's recommendations question the architecture of the goods and services tax, going far beyond the arithmetic calculation, but its proposal of an interim two-rate structure is far from optimal
The withdrawal of incentives is a sensitive proposal as it entails both gainers and losers
The Goods and Services Tax processes in their current avatar appear one-sided. What we need is a transparent, consultative mechanism
Notwithstanding the disappointing Select Panel report, the GST Bill can be salvaged with simple adjustments and the backing of stakeholders
Though the GST Council will design the tax, it is imposed with significant constraints on the choices it can make
The incremental revenues from taxation of land and liquor will help in keeping the GST rate low
For the government to go forward, it should build a better structure for research and policy analysis for the goods and services tax
The TARC report calls for the formation of a tax council to make the administration less adversarial and more productive
We need a system that helps entrepreneurs and allows smooth administration
The Parliamentary Committee's endorsement has lifted this critical indirect tax reform above the quagmire of divisive politics
The move reflects willingness of the finance minister and the CBDT to remain flexible to emerging needs of the new business models
The Empowered Committee of State Finance Ministers' design squeezes out the politics from the new tax but makes it unacceptable as an alternative to the existing structure
This years Budget has been widely acclaimed as bold and responsible. Yet, investors, both foreign and domestic, may greet it with only a yawn.
The introduction of the indirect transfer provisions with retrospective effect was bad politics and bad economics