Former Chief Economic Advisor (CEA) Arvind Subramanian has expressed his dissatisfaction with the recent decision by the GST (Goods and Services Tax) Council, calling it a “national tragedy.” Subramanian, a prominent economist, criticized the council’s approach, arguing that it undermines India’s economic growth prospects.
Source:- bbc news
The decision in question involves adjustments to the GST structure, including changes to tax rates and exemptions. Subramanian believes that these alterations will have a negative impact on the business environment and could hinder the government’s efforts to foster a competitive and efficient economy. He particularly voiced concern about the complexity and inconsistency of the tax structure, which he argues can lead to greater compliance burdens for businesses, especially small and medium enterprises (SMEs).
Source:- news 18
Subramanian’s remarks come in the context of India’s ongoing economic challenges, with many sectors struggling to recover from the effects of the COVID-19 pandemic. In his view, the GST changes could exacerbate existing problems rather than provide the necessary stimulus for growth. He also pointed out that such decisions could undermine investor confidence, affecting both domestic and foreign investments.
The former CEA has long been a critic of some of the government’s economic policies, including the GST implementation itself. He believes that while the GST was intended to simplify the tax system and create a unified market, its execution has been flawed, leading to inefficiencies and complications for businesses.
In summary, Arvind Subramanian’s criticism of the GST Council’s recent decision underscores the growing concerns among economists and business leaders about the impact of these policy changes on India’s economic trajectory. His “national tragedy” comment highlights the seriousness with which he views the potential long-term consequences for the country’s fiscal health and growth.
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