The oppressive tax

The oppressive tax

News: This article is in continuation of recently covered article https://dics.co/current-affairs/online-gaming- implication-of-recent-gst-changes-upsc

What will be the impact of Govt’s recent steps?
• Nowhere in the world is tax levied on the entire money that is pooled in online games.
• The annual collection of GST from online games is estimated to be approximately Rs 2,000 crore, a fraction of the annual GST collection of Rs 15 lakh crore.
• The belief that excessive focus on revenue maximization will lead to increase in tax collection is a flawed idea
• Approximately 1,00,000 people are directly employed in the industry and indirect employment is twice the figure. If 28% GST is levied, there will be loss of jobs with no commensurate increase in revenue.
• Lower rates on taxes will result in lower tax collection but overall the industry will grow and its impact on economy needs to be ascertained as well.

Conclusion
• Benjamin Franklin famously said that nothing in this world is certain but death and taxes.