The rich, unable to spend during the lockdowns, accumulated savings. Their pent-up demand for consumption should be tapped into for raising additional revenues. Not the demand for essentials in the lowest tax slab. The not-rich should be spared this new squeeze
The GST Council wants to raise the lowest tax slab to 8% from 5% at present, as early as in its next meeting. This proposal has reportedly emerged from a report under preparation by a panel of state finance ministers on suggestions for increasing revenue. Estimates put the additional revenues the hike may yield at ₹1.50 trillion a year, based on the thumb rule that increasing the tax rate in the lowest slab by a 1% yields additional revenue of ₹50,000 crore annually.
Source: https://www.livemint.com/opinion/online-views/ditch-the-move-to-raise-the-lowest-gst-slab-11646652507209.html
