What would happen if India adopted Dubai Like tax policies ?Most of us must be aware that Dubai is one of the fastest growing economies. Their tourism is incomparable but mostly because they made it that way with super in-flow of money. One thing that I liked about Dubai is that they don't have Service Tax. They don't tax people on their incomes, but that doesn't mean that they don't collect taxes. Actually they are in alot of profit or lets say their revenue receipts are very high, as they charge tax on consumer goods and all.
India also charges tax on consumer items like VAT and service tax and cess's and the new incoming GST which is a blender mix of all these.
People who evade tax or who keep black money, keep it to save income tax but they keep money to spend it, so if income tax is scooped off the table and consumer taxes are implied that might actually bring the inflow of stored black money in the economy.
So I was thinking that If India adopted Dubai's model of tax collection, can India actually reduce its fiscal deficit or to say be a thriving country ?
Give your thoughts about it.