The GST roll out will prove to be a revolutionary step and has potential to transform the "fiscal architecture" of the government
Indian truck drivers clock an average of 280 km per day, World average is 400 km per day and USA average is 700 km The under performance of Indian truckers has less to do with bad roads and less fancy trucks and more about prevailing archaic laws.Truck drivers in India spend 60 per cent of their time off roads negotiating check posts and toll plazas 650-odd check posts and 11 categories of taxes on the road transport sector in India.Slow movement of trucks leads to productivity loss. If the distance covered goes up by 20% per day, Indian truck productivity would improve by 12%.Higher productivity would cut the need for buffer stocks; reduce the loss of perishable goods, cut down the need for many warehouses, etc.Analysts say the implementation of the goods and services tax (GST) could provide the kind of productivity boost illustrated above.
Indian truck drivers clock an average of 280 km per day, World average is 400 km per day and USA average is 700 km The under performance of Indian truckers has less to do with bad roads and less fancy trucks and more about prevailing archaic laws.Truck drivers in India spend 60 per cent of their time off roads negotiating check posts and toll plazas 650-odd check posts and 11 categories of taxes on the road transport sector in India.Slow movement of trucks leads to productivity loss. If the distance covered goes up by 20% per day, Indian truck productivity would improve by 12%.Higher productivity would cut the need for buffer stocks; reduce the loss of perishable goods, cut down the need for many warehouses, etc.Analysts say the implementation of the goods and services tax (GST) could provide the kind of productivity boost illustrated above.
The benefits of GST:Unified market: The GST will cut down the large number of taxes imposed by the central government (eg. central VAT or excise duty, services tax, central sales tax on inter-state sales, etc.) and states (VAT on sales, entertainment tax, luxury tax and octroi and entry taxes levied by municipalities). This will lead to the creation of a unified market, which would facilitate seamless movement of goods across states and reduce the transaction cost of businesses.
Article by Paritosh Vyas, Bhartiya Janta Party
#PoliticsofDevelopment #GST #PleaseParliamentRun
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