At least folks now realised that they can not fool poor people anymore by taxing lavishly. See what Vijay Kelkar says:
- “Consumers pay the tax on final goods and services purchased. In terms of the national economic identity, therefore, a tax is levied on that part of value added which is consumed. Exports are “zero-rated’ as in competitive international markets you cannot export taxes!
- One of the most important factors adversely affecting our competitiveness is the present indirect tax system.
- High import tariffs, excises and turnover tax on domestic goods and services have enormous cascading effects, leading to a distorted structure of production, consumption and exports.
- The existing tax system introduces myriad distortions which favour some goods and services at the expense of others. Manufacturing sector is so highly taxed that
is an outlier in terms of taxation”. India