Increase in Value-added-tax (VAT) for the second time this fiscal by the Maharashtra government is poor governance and it would make life difficult for the people as prices of most items including travel would go up in the future. Citizens are already facing the heat of inflationary trend and the new VAT rate would mean they would struggle to make both ends meet. The state government should have cut costs to fill the gap in revenue shortfalls to undertake infrastructure development schemes but burdening the citizens who pay taxes just because they have no alternative is unethical as well as undemocratic. A penny saved is a penny earned and Maharashtra which is a progressive state should create more employment opportunities for the citizens which not only would mean more money in the hands of the people but the State government too would benefit with more revenue as growth rate will rise. GST roll out next year would mean equal tax rates in all states and let us hope the rates are reasonable and a mechanism is worked out where production and consumption goes up that would mean more revenue for the government even at low rates of tax regime!
S.N. Kabra
(The views expressed by the author in the article are his/her own.)
