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  • Category: Miscellaneous

    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.
  • #569042
    Well the author made the new suggestion to the government to adopt Dubai model of taxation. Frankly speaking the much earner of tax is through income on Individuals for this country and our planners wont agree with your suggestion . Coming to the point of having only tax on goods and commodities , then India would find the short fall of allocating funds to the states concerned. You know that National Development Council meeting would be held every year and the proposals of each state are reviewed and funds allotted. So the major income for India is from income and general tax, therefore your suggestion of adopting Dubai based model may not be agreed.
    K Mohan
    I consider myself as the learner everyday


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