Good enough vs ideal: Incremental GST reforms may outshine rapid changes

Our guiding principle in taxation should be driven by the principle of what works, not what is theoretically the best idea. The good enough should not be made the enemy of the ideal

The work of reform is never finished. Last month, economist M Govinda Rao made an eloquent case in a column published in this newspaper for reforming the Goods and Services Tax (GST), both in terms of its direction and timing. He argues that the time for big reform is now, as the economy seems to be doing fine despite global headwinds. Never mind that in democracies, deep reform is undertaken only during a crisis. He also believes that our current GST structure is “sub-optimal” and must be moved in the direction of global “best practices”, “lower and