Well its a step to boost consumption, when direct tax is reduced people will spend that money on buying things. Also those employing people will have more cash in hand thru income tax or corporate tax or taking other government benefit schemes. I think cost of production will be lowered too by reducing tax on required raw material and ultimately consumers will get products at same price even with increased GST.
Obviously government cannot reduce its revenue which is essential to keep the country moving ahead hence this is nice strategy to counter slowdown as well as maintain healthy revenue. I hope one day there r certain special incentives brought about for income tax payers, some kind of card system where it can be swiped to obtain discounts or free services
Obviously government cannot reduce its revenue which is essential to keep the country moving ahead hence this is nice strategy to counter slowdown as well as maintain healthy revenue. I hope one day there r certain special incentives brought about for income tax payers, some kind of card system where it can be swiped to obtain discounts or free services