Expenditure tax may be a good idea but what about the implementation and compliance?Time to time there are public demands for expenditure taxes in place of the taxes like income tax etc. Government also must be considering this aspect many times but seeing the difficulties could not implement it. In the recent speech by Finance Minister there was a mention about this and some people believe that India may now consider switching to that regime from the existing income tax regime. We do not know the final outcome so far and let us wait for the Govt decisions in this regard.
My point is that in income tax also the biggest problem for government is to realise the income tax from all those who are hiding their income and not paying tax. In expenditure tax also the transactions which are not mapped in digital online space will escape from the expenditure tax net. The basic problem in our country is that of implementation and compliance which will remain same in the new regime also.
What are your views on this?