Necessary evil


Although there could be some mishandling of RGST debate in media by the government spokespersons and some lacunas in the proposed bill but we should analyse the cost of not implementing it. Firstly, the country is already suffering due to low tax revenues obstructing development projects. Secondly, there are around 20 million citizens devastated by floods who need rehabilitation. It was estimated that Rs 82 billion would be realised through implementation of RGST but the protracted delay has aggravated their woes. Thirdly, there is a need to comprehend the fact that lurking fear of inflation through RGST is far lesser evil and eventuality than constant borrowing by the government. Lastly, it is to be understood that RGST would bring a large chunk of people i.e., retailers, producers and distributors into the tax net, thereby causing more revenue generation leading to financial independence.