Sales tax hike on clothes...seriously?
By vanny
@vandana7 (100302)
India
December 30, 2021 4:19am CST
So to meet the short fall in revenues much of which is to go for housing parliamentarians... read about 1000 Indians only, for a few days every six months, our government wants 12 percent GST on clothes.
India has more farmers, and more people employed in textile industry.
Why I am I against this hike?
It is what we export. Our trade deficit is large enough to warrant more exports.
But from where to cover the deficit?
Automobiles!
Automobiles that are guzzlers of fossil fuels.
They create the pollution for which the government has to pay through social expenditure budget.
They are also a fad. To an extent clothes are also a fad. But automobiles are big ticket things. So larger the value, the higher should be sales tax.
Automobiles also lead to accidents - especially the ones the youngsters ride. Time hefty taxes are levied on those.
There is parking issue too. If the vehicles become expensive, people will think twice about buying more vehicles.
And don't we bleed in forex for that fossil fuels bill?
So to my mind, taxes should come from here, not from clothes.
If clothes become expensive, people will start foregoing extra pair and soon, it will be the lowest in the rung...those who sew clothes for others from their home or small shops who will go out of business.
I know one shop closed down already. Another guy sits next to fruit shop and waits patiently for customers.
These are poor guys who will be hurt. Why punch them so hard, while allowing rich to buy expensive motorcycles for their kids with lesser tax, only to mourn their death.
I would be fine if the taxes were levied on fashion industry, not textiles.
India News: Five days after his Suzuki 1000-cc superbike skidded and crashed on a Hyderabad expressway, former Indian skipper Mohammed Azharuddin's son succumbed
11 people like this
8 responses
@louievill (28851)
• Philippines
30 Dec 21
You are right Vanny, governments around the world are so desperate where to get more revenue to cover what they spent fighting COVID19 that in some ways they had become impractical , illogical and at times downright insane. I hope they don't put additional taxes on your pharmaceutical industry as well.
5 people like this
@louievill (28851)
• Philippines
30 Dec 21
@Vree0937 correct, not just in India but they should impose that on all super rich people around the world. Rich people get away with paying taxes because they can afford to hire good tax lawyers, accountants and financial advisers.
5 people like this
@DaddyEvil (137259)
• United States
31 Dec 21
@vandana7 Nope. You'll find stupid people in every government. You should have realized that when Trump gained the Presidency here.
2 people like this
@wolfgirl569 (106397)
• Marion, Ohio
31 Dec 21
@vandana7 Everywhere it seems. Remember we had a Rump 
2 people like this
@LadyDuck (471454)
• Switzerland
30 Dec 21
Here in Europe expensive goods are taxed a lot more than normal items. As an example the normal "sale tax" (clothing, appliances, shoes, almost everything) is 22% (that is HIGH!), but on fashion industry, luxury cars, jewels is 38%.
Here in Switzerland the sales tax is 2.5% and 7.7% on luxury items, what a difference!
2 people like this
@vandana7 (100302)
• India
30 Dec 21
Oh wow...that sure is high rate Anna. I am lamenting 12 percent GST on textiles and garments. We have a maximum GST slab of 28 percent. I would rather the slab keeps on increasing till 100 depending upon which extravagance the person wants to indulge in.
2 people like this
@LindaOHio (178877)
• United States
30 Dec 21
You are correct, Vanny. Taxes should be higher on automobiles than clothing.
2 people like this
@vandana7 (100302)
• India
30 Dec 21
Larger homes too. Film actors. It is no secret that they are paid as high as 200000000 INR plus. But how can their tax slab rate be same as slab rate for others?
There has to be basic exemption which is there of course. Beyond that for every specific amount there should be hike... 30 percent across the board for those earning more than 1000000 is silly.
2 people like this
@LindaOHio (178877)
• United States
31 Dec 21
@vandana7 Hope you have a safe and Happy New Year.
2 people like this
@Vree0937 (3879)
• Indonesia
1 Jan 22
@LindaOHio Happy Blessed New Year 2022 to you :-)
2 people like this
@vandana7 (100302)
• India
2 Jan 22
Yes. If I spend 100 INR on clothes, I pay 12 INR as GST. So total 112.
But then, those who can afford 100 INR thing, can only afford automobiles of 500000 INR. Not 3000000 INR. Therefore, the tax RATES on the two automobiles cannot be the same, simply because they are the same category. We are in the process pampering those who are buying more expensive stuff.
