In yesterday’s article we saw how inefficient the goods and services tax (GST) was, and how it increased the tax burden on the consumers as well as businesses.
We have also identified a few major shortcomings of the existing sales and service tax (SST2.0). In this article, we will propose how to overcome each of them, and explain the benefits of the tweaked SST.Eliminate cascading effect of taxes
To eliminate a tax on tax, the sales tax and service tax should not be implemented under two separate Acts in separate silos.
They should be combined so that any company with a sales tax or service tax registration number need not charge sales tax or service tax to each other.