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  • Category: Miscellaneous

    Cost of living of middle class increases by Rs.4000 because of GST

    Economic experts estimating the cost of living increases by Rs.4000 because of new taxes from July 1st. Because of inclusion of all taxes in GST , the taxes of all goods have increased in percentage than before. If a person pays Rs.1000 Telephone bill with previous tax of 14.5 percent we have to pay Rs. 1145. But now with 18 percent GST tax we have to pay Rs.35 excess. Like this for all commodities there will be an increase in cost of goods. Due to GST taxes farmers using fertilisers, pesticides, tractors etc. will increase which affects severely on cost of food items. Following GST is to increase tax base of the government but not for the welfare of common man is the talk of economic experts. Do you think implementing GST taxes will make common man's life happy or miserable?
  • #600639
    Well when the government sought the suggestions and details from the organization and experts on how to be the tax structure for GST, no one came forward and when the government is all set to implement the GST with almost approval from all the states , now the experts are venting their ire and calculating the probable loss of every house hold in future after GST implemented. When certain house hold commodities are going to be free, then why those calculations are not taken in to account. I think there would be balanced aspect in saving and spending and that wont affect the general public at large.
    K Mohan
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

  • #600645
    Each one is interpreting the GST in their own way in bits and pieces. No one is giving a complete effect. Recently I have seen in the newspapers that a common man is going to save around 500 rupees on some items. Now as per this thread the expenses increase by 4000 Rupees. Yesterday I have seen in the paper they are going to reduce tax on another 66 items. Is this taken into account while calculating. Let somebody give a complete picture of this new implement, that will be more helpful rather than these bits and pieces.
    drrao
    always confident

  • #600647
    Dr. Rao, We don't have good idea regarding old type of taxes and new GST taxes imposed on goods. So many thinking because inclusion of all taxes together, GST taxes on goods become reduced but it is not the same as I mentioned an example of telephone bill, requirements of farmers, entertainment tax etc. Because of people of some sectors outburst their agony to the government, government has reduced their tax marginally in some cases.

  • #600654
    When a new scheme has been launched, we have no right to criticize before hand without even experiencing the good and bad effects. Let us wait till implemented and give rave comments.
    K Mohan
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

  • #600683
    As GST is replacing existing taxes and there are many things which are inter related and inter dependent it is not easy to calculate its affect on the middle class right at this juncture.

    However once things are stabilized actual scenario will emerge out. There will be some variations in plus and minus directions and some marginal change is expected.

    Knowledge is power.


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