In practice, it could really go either way. And either way could mean good or bad for somebody and not everybody. This has already been proven in many countries who has adopted GST for ages. But one thing for sure, GST gives the government full Flexibility.
Now or in the past, it started with "I will tax this and that". So sales tax, service tax, government tax, custom tax etc. were introduced. With GST, it started with "I will tax everything" except those I give exceptions.
So system wise, GST is also better. Or in another word, GST is more systematic.
Most people may have known the devil of GST from many blog posts by now, but seriously if you look at the topic with a clear mind and NOT just from consumer point of view, you may realize those are really just purely speculation. However, it may still happen but when it does, it is because the consumers ourselves are making it happen. By thinking it might happen.
Interestingly however, not many people know the official GST info. What is the government thinking with regard to GST ?
- Tax payers will pay less tax
- Industries will save money
- Government can earn more money ( diversify income actually )
- GST will not impact inflation etc.
Got it ?
People who buy will pay less,
people who sell will pay less and
government will have more money.
Interesting or not ? its MAGIC !!
Read more here.