To what extent does taxation and the current tax system in your community and country contribute to poverty?
Many refer to a poverty tax (PBS) or ghetto tax, which despite not being a literal tax, refers to the situation where people pay higher costs for equivalent goods or services because they are poor or live in a poor area. Examples include health care and groceries.
Can the tax code be reformed to reduce poverty? If so, how so?
In reference to the tax laws in India, a new tax called GST (Goods and Services Tax) has been introduced. The Goods and Service Tax Act was passed by the Parliament on 29th March 2017. The Act came into effect on 1st July 2017. This is an indirect tax that is levied on the supply of goods and services, and it aims to replace many other indirect taxes. The idea to introduce this tax was actually formulated in 2000 by the then PM of India, Atul Bihari Vajpaye, and it took 17 years to implement. Many economists claim that this tax will show good results in the long term.
Therefore, taking an example from this situation in India, the tax code can be reformed to reduce poverty - but it is a rigorous, articulate and long process. I am attaching a link which explains GST in more detail:
https://cleartax.in/s/gst-law-goods-and-services-tax
GST is the biggest tax reform in India levied on the goods and services which subsumes both the State (VAT, Entertainment Tax, Luxury Tax, Octroi) and Central taxes (CST, Service Tax, Excise Duty). This will help the end consumer like us to bear only GST charged by the last dealer in the supply chain. After all, One Nation One tax is the slogan of our PM Sri Narendra Modi. I am attaching a link which explains GST in more detail:
https://corpbiz.io/learning/brief-gst-composition-scheme/
https://corpbiz.io/gst-registration
Wow... so nice discus about Poverty and Taxation It is very informative for everyone.
https://corpbiz.io/gst-registration
https://corpbiz.io/gst-return-filing
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