“The entire trade chain is ruptured. Is this the ease of business the prime minister talks about?”
The government has said it will assess reasons for low rate of compliance.
A recent hike in house rent allowances for government employees, coupled with staggered price hikes by firms adjusting to GST, may have contributed to price rises.
Small and medium sized businesses across the country report tumbling sales, undermining job creation and damaging sentiment in industries crucial to Modi’s political powerbase.
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Changes to GST rates may open a Pandora’s box, while the jewelry-PAN decision sees the government walking away from its fight against black money.
“Compliance burden of medium and small taxpayers in GST is being reduced,” finance minister Arun Jaitley said.
Quarterly filing and higher turnover limits need to be intertwined to stop the GST from becoming a car-wreck for the country’s SMEs.
Solutions involve either an immediate fiscal or monetary stabilisation policy, or pushing through further supply-side structural reforms.
“Policies that ought to be implemented, and ought to implemented well, like GST, are being completely fumbled,” Shourie also said in an interview to NDTV.
“Labour laws are lax, there’s little effort to build a component ecosystem and logistics, and transport remains a big problem. No one seems to be investing in skilled labour that will build the phones.”
In trying to appease its constituents, the RSS has not only insulated Modi from economic accountability but has also absorbed opposition criticisms against the government.
Many BJP leaders are attacking the finance minister every day, but there is a convenient silence around the prime minister’s role in the economic decisions that brought us here.
Fiscal policy is a potent instrument that must be used to alleviate the unemployment crisis, but first, supply-side constraints need to be systematically united.
With the ripples of demonetisation and a poorly-designed GST spreading economic distress, voters will assess the promise of Narendra Modi’s ‘New India’ in due course.
Already struggling to survive and compete with cheaper machine-made goods, the added burden of GST compliance will decimate self-employed artisans.
The lower cost of gold through an unintended loophole triggered increased imports from South Korea. But banning this will only unravel the point of a free-trade agreement.
Opposition parties and leaders may or may not be able to cobble together a coherent counter-narrative, but citizens are beginning to take note of the abuse of public confidence and poll promises.
Vinod Dua discusses how the inefficient implementation of the GST is hurting the Indian economy and the clean Ganga campaign.
To restore confidence, better governance, rather than any additional fiscal push, is the need of the hour.
The big worry is that economic growth, which slipped to a three-year low in the last quarter, could take a further hit if public spending is slashed.
The widening of the year-on-year deficit was primarily due to a larger increase in merchandise imports relative to exports, the RBI said in its release.
Recyclable plastic, an item commonly sold by ragpickers, was taxed 5.5% before but is now in the 18% bracket.
More than a fifth of large companies did not earn enough to pay interest on their loans and the pace of new loans fell to the lowest in more than six decades.
Congress vice president Rahul Gandhi accused Prime Minister Narendra Modi of causing “tremendous damage” to India’s economy.
Ministers were shuttled in and out, supposedly on the basis of performance. But who will take responsibility for the structural slowing down of India’s economy, poor employment generation and agriculture distress?
Exports from labour-intensive industries have either showed outright declines or reported anaemic growth. This is an ominous sign for job creation in India.
Finance minister Arun Jaitley asserted that the government over the last two-three years has made tax evasion difficult and that has come as a “rude shock” to many.
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Vinod Dua reads out Tripura CM Manik Sarkar’s speech that was allegedly censored by Prasar Bharati
Despite government press releases, demonetisation doesn’t appear to have spurred a substantial increase in number of new tax payers or direct tax collection.
Satpathy says he does not buy that there is no alternative to Modi in the next general elections and is confident of the re-emergence of the regional parties.
The consumer price index, the main policy target of the RBI, likely rose 1.87% in July from a year earlier, compared with an increase of 1.54% in June.
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In its mid-year economic survey, chief economic adviser Arvind Subramanian said there were downside risks to the official growth forecast of 6.75-7.5% for the fiscal year to March 2018.
Food and beverages account for nearly half of the consumer price index basket and are largely dependent on the monsoons, nearly 70% of precipitation.
Millions of companies are still not ready to file their first GST returns before the August 20 deadline, a top official said.
Surging prices caused by the tax dented demand for services and pushed the sub-index on new business to 45.2 in July, its lowest in nearly four years.
The Nikkei/IHS Markit manufacturing purchasing managers’ index fell to 47.9 in July from June’s 50.9, its first reading below the 50 mark.
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