How efficient is the VAT in developing countries in curbing tax evasion an increasing the state revenue?
VAT has been implemented in 130 countries around the world. It was first implemented in 1954. It is a proven system that is globally accepted. Australia also joined the VAT regime last year. All these countries have proved that VAT pays off in the long run. Would the VAT implemented in India be in line with globally accepted tax system? VAT implemented in India essentially replaces, sales tax while other taxes like octroi, excise duties, etc remain as they are. In foreign countries, all the taxes are unified under VAT. In India VAT is restricted to goods, whereas in foreign countries, it is applicable for both goods and services. In future, Indian too can adopt similar steps to make the VAT structure more effective. Do you think there should be more amendments to VAT? The government must ensure that by mid-February, all states should have the VAT implementation details in place and the same be put up in their respective websites. The opinions and views of traders, business houses and t
