October 09, 2017

GST, Khakhra Economics, Babel of Politics and Context Blindness

Shankkar Aiyar in this New Indian Express opinion piece writes about the lack of thought evident in the application of GST rates:


"Consider the context of blindness.


Makers of khakhras (and chapattis, namkeens, sliced-diced mangoes) are prepared by home enterprises, often run by women, supplying to larger food chains creating jobs and incomes. Yet, these food items attracted 12 per cent GST.


Biomass briquettes, a good concept for post-harvest waste management, were taxed at 18 per cent. India’s rural and urban habitat badly need enterprises for waste management. Taxation could be an enabler. Yet, GST on waste—including paper, rubber, plastic and e-waste—was between 28 and 18 per cent. The Prime Minister is evangelising the idea of LPG usage in rural homes and the rate on LPG stoves continues to be 18 per cent."


Topic : State Capacity / In : OP-EDS
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