‘Maslow’s (1943, 1954) hierarchy of needs’ is a brilliant theory in human psychology which comprises of 5 different categories of needs. Maslow wanted to know what factors motivate native and concluded that they are inspired by five different categories of needs.
The article would describe the correlation between Maslow’s hierarchy and recent 4-tier GST slabs (i.e. 0%, 5%, 12% and 18%) declared by the center and the post implementation challenges and obstacles. The experimentation or initial pilot testing on this taxation policy has to be need based.
Goods and Services Tax: The Implementation
First of all, we have to create a massive awareness amongst the people. We need to educate all regarding GST and VAT at first because they are confused. After Chidambaram’s recent speech and opinion, there might be difficult to get a consensus between center and states because few states have welcomed and others just murmured and finally we can go for a two-way control.
The immediate problem before GST council would be deciding the tax structure and product category, for example, real estate, aviation, food, etc. are now falling under basic necessities due to changing lifestyles.
We need to follow benchmarking models of Australia and Malaysia who have already executed the same and still struggling to maintain the timelines. Moreover, we need to create an IT backbone for GST penetration.
Last but not the least the commoners have to be taken into consideration since the taxation rules are meant for the poorest of the poor.
GST: Good or Bad?
By 20th November 2016, the pictures would be more concreate because both the central and state governments are meeting together for a joint discussion on several issues and creating a global impact through this revolution would only be possible if a poor person can understand the jerks.
The automobile lovers are trending towards EVs and that’s why the electric vehicles demand zero GST. We have to promote these kinds of eco-friendly but newly growing industries.
On the other hand, since the project is for initial five years, compensating different states in case of out of track rolling would be too tedious. Henceforth, we are supposed to allocate a slab according to the associated demands and urgencies of a product.
Finally, we need to categorize the products into essentials and luxury based and as per the merit and demerit we have to charge the taxes. It should be consumer-friendly and we have to cut our coats according to our pockets .
FM Arun Jaitley has declared a landmark initiative but the market analysts are on to a prediction that if not managed properly, the policy might adversely affect the GDP although sectors like logistics, share markets are going to get a cream out of it.
There is a possibility for the ultimate consumers to bear the final loads or burdens even if the business units would have better exchange policies for their customers. So let’s wait till April to September, 2017.