Wednesday, June 16, 2021
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World Bank report on ease of doing business

Central government is thumping its own back on World Bank report showing India jumping 30 positions amongst the countries in terms of Ease of Doing Business. Bitter fact is that both demonetisation and GST though being very good initiatives, flopped badly due to poor implementation hitting hard traders and small industrialists already disappointed because of Chinese imports dominating in all commodities. World Bank ranking may be on some average where such high ranking might be due to some very big industries and not of normal traders.

Social-media reports indicate a role of Delhi government in such high ranking-jump because of ease of getting electricity-connections in the capital city of India that too with largely reduced tariffs. If it is so, central government should have highlighted this factor also for motivating state-governments to perform even better. Simplifying GST in accordance with aspiration of traders including also provision of filing quarterly returns for all with monthly tax-payment in public-exchequer with rational and lower tax-rate structure, re-imposing limit of monthly cash-withdrawal from banks by individuals at say Rs 96,000 to be reduced gradually further and providing a permanent voluntary-disclosure-scheme in tax-returns with simplified tax-regime with minimum tax-exemptions will further pave way for ease of doing business. Subsidies should be minimised and concept of cess and surcharge should be altogether abolished. Policy should be of voluntary and automatic tax compliance rather than based on suspecting traders of being tax-thieves.

Madhu Agrawal

(The views expressed by the author in the article are his/her own.)

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