General Observation:
After demonetisation, Government and RBI is still optimistic about GDP growth forecasts whereas all other global & domestic economics who are on payroll of various private corporations are in view of 1.5% lesser growth going forward from current levels of 8%.
However, we feel demonetisation was a important step towards implementation of flawless GST, therefore reduction in net Tax rates going forward into 2017-18 FY & beyond.
Control on Fake currency, funding for crimes including terror, drugs, riots, political bandhs & voters’ bribery are other added advantages of this demonetisation exercise.
All these benefits would be short lived if Government fails to carry out follow-ups.
Tax compliance is key to success in globalised economy. However, unaccounted cash was accumulated over time because of various inefficiency exploited in form of Govt sourcing norms without transparency (lack of checks & balances) plus Taxation policies of past.Read More »
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