Perspective of GST as regressive tax

GST is just as regressive as excise duty or sales tax and turnover tax and not more than that

Sukumar Mukhopadhyay 

Sukumar Mukhopadhyay

In the popular parlance, it is a practice to consider VAT/GST as a regressive tax compared to Income Tax, which is a progressive tax. This understanding gives a reason to the administrators to introduce GST but have reduced rates of some of the essential commodities such as food, clothing, and medical benefits in order to make the GST rates pro-poor, in the eye of the poor.

But this is not the whole consideration. It is only an apparent and partial view and many more aspects need to be taken into account. While expenditure on GST by families in relation to their income is the usual way to ...

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First Published: Mon, December 03 2018. 00:06 IST