FS Dr.TVS rightly mentioned that Tax to GDP ratio should go up.
Couple of thoughts related to this and other Revenue augmentation avenues;
a) Tax exemption except for Primary produce which are Agri products, is anathema to Value Addition. I would say that Value Add abhors tax exemption, with few exceptions!!
It also militates against the concept of Nominal GDP growth rate as it is always zero and so unaffected by inflation or deflation. In the same breath, Agri income should also be taxed at say 0.1% atleast.
Therefore, my humble submission to Govt , is to take a relook at all exempted/zero (0)-rated products under GST etc.Atleast these products should be brought under 1% slab by creating a new slab.
b)Mining Royalty rates should be indexed to inflation.
c) EB overdues to Power generation companies as per PRAAPTI.in is increasing every month which have touched Rs.1.07 lac cr. as of Feb 2022.
You might have noticed that this is a serious drag on the economy, which will have repercussions on the lenders .
d)Local bodies charges, EB tariffs must be indexed to inflation to keep them out of State Politics.
