August 19, 2015
https://www.facebook.com/mehtarahulc/posts/10152983514546922
https://www.facebook.com/mehtarahulc/posts/10152983514546922
How SoMoKe's VAT / GST refund for tourist policy will reduce goods \ services tourists buy from small traders \ hotels etc. Solution I propose ---- abolish VAT / GST and instead use (Wealth TAx minus Income Tax)
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SoMoKe are working on a law-draft that if a foreign tourist comes into India , and spends money, then at the time of exiting of India, all VAT / GST he has paid will get refunded to the foreigner !!
.
Many countries such EU countries have this policy.
.
Now lets say a manufacturer M produces goods. M has large volume and so he adopts GST. So his bill to large trader LT and small trader ST will be
.
Price = Rs 1000
GST = 20% = Rs 200
Total = Rs 1200
.
==
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Now say LT decides to make profit of Rs 100 and ST = small trader decides to make profit of Rs 50
.
So large trader LT will make bill as follow
.
Price = Rs 1100
GST = 20% = Rs 220
Total = Rs 1320
.
And small trader will make bill as
.
Price = Rs 1250
GST = 2 % = Rs 25
Total = Rs 1275
.
And please note ---- small trader has to simply write Rs 1275 on his bill. He cant write GST amount on bill !!!
.
====
.
So when foreign tourist is exiting out of India, he will get Rs 220 back if he had made purchase from LT = large trader. And foreign tourist will get Rs 0 back if he buys from small trader.
.
So effectively, large trader, despite higher profit will cost Rs 1100 to the tourist. While small trader's goods will cost him Rs 1275 .
.
So a big part of tourist business will go from hands from small traders to large traders due to SoMoKe's GST.
.
===
.
Solution?
.
Solution I propose is to ban GST / VAT / excise / sales tax / service tax etc and instead use (wealth tax minus income tax minus 15% of salaries paid minus other taxes paid).
.
For details of proposed see :https://www.facebook.com/mehtarahulc/posts/10152686291831922
.
If you wish to bring WT = Wealth tax on India, then pls send above URL to MP via SMS as an order
.
.
SoMoKe are working on a law-draft that if a foreign tourist comes into India , and spends money, then at the time of exiting of India, all VAT / GST he has paid will get refunded to the foreigner !!
.
Many countries such EU countries have this policy.
.
Now lets say a manufacturer M produces goods. M has large volume and so he adopts GST. So his bill to large trader LT and small trader ST will be
.
Price = Rs 1000
GST = 20% = Rs 200
Total = Rs 1200
.
==
.
Now say LT decides to make profit of Rs 100 and ST = small trader decides to make profit of Rs 50
.
So large trader LT will make bill as follow
.
Price = Rs 1100
GST = 20% = Rs 220
Total = Rs 1320
.
And small trader will make bill as
.
Price = Rs 1250
GST = 2 % = Rs 25
Total = Rs 1275
.
And please note ---- small trader has to simply write Rs 1275 on his bill. He cant write GST amount on bill !!!
.
====
.
So when foreign tourist is exiting out of India, he will get Rs 220 back if he had made purchase from LT = large trader. And foreign tourist will get Rs 0 back if he buys from small trader.
.
So effectively, large trader, despite higher profit will cost Rs 1100 to the tourist. While small trader's goods will cost him Rs 1275 .
.
So a big part of tourist business will go from hands from small traders to large traders due to SoMoKe's GST.
.
===
.
Solution?
.
Solution I propose is to ban GST / VAT / excise / sales tax / service tax etc and instead use (wealth tax minus income tax minus 15% of salaries paid minus other taxes paid).
.
For details of proposed see :https://www.facebook.com/mehtarahulc/posts/10152686291831922
.
If you wish to bring WT = Wealth tax on India, then pls send above URL to MP via SMS as an order
.
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