Skip to main content

Inequities in India's Taxation: Unfolding the GST Council's Ironies .

 Introduction:

The GST Council in India convenes periodically to discuss and refine tax structures. Each meeting brings forth a mix of positive and negative developments, often revealing new ironies and fallacies within the economy. 

This article sheds light on certain inconsistencies, focusing on the taxation of non-branded atta or wheat, the exemption of cricket games like IPL from GST, and the associated revenue generation.

Taxing Essentials, Exempting Entertainment:

One of the glaring ironies in the Indian tax system is the imposition of GST on non-branded atta or wheat, an essential commodity consumed by the poor. Despite the burden on those struggling to make ends meet, cricket, a form of entertainment, remains exempt from GST. The Board of Control for Cricket in India (BCCI), the governing body of cricket in India, enjoys tax-free status despite being the wealthiest cricket governing body globally.

Example: A daily wage laborer, striving to feed his family, pays GST on every essential commodity he purchases, including food. Meanwhile, cricket, which garners substantial revenue, remains untaxed.

Taxing Fantasy Apps vs. Taxing IPL:

The disparity in taxation becomes even more pronounced when comparing fantasy gaming apps, taxed up to 28%, with the Indian Premier League (IPL), which remains tax-exempt. The IPL, a lucrative sporting event, generates substantial revenues from advertisements and broadcast deals. Despite this, the government does not directly benefit from this income.

Example: The estimated ad revenue of IPL 2023 crossed ₹10,000 crore, yet the government receives no share of this significant sum, while other industries face higher tax rates.

Cricket Promotion vs. Taxpayer's Burden:

The rationale behind the tax exemption for IPL lies in promoting cricket. However, cricket is already a well-established sport in India and enjoys immense popularity. At this stage, it becomes crucial to examine whether the promotion rationale still holds validity, or if the focus should shift towards ensuring that the sport contributes its fair share to the nation's coffers.

Example: As hardworking taxpayers diligently pay their dues to the government, the tax-free status of IPL could be seen as an unfair advantage, especially when other industries face higher taxation.

Conclusion:

The disparities in India's tax structure, as exposed by the GST Council, raise pertinent questions about fairness and equity. While essentials are taxed, entertainment, such as IPL, remains exempt. 

The time has come to reevaluate the tax policies surrounding cricket and ensure that it contributes its due share towards the nation's progress.

Labels:

Comments

Post a Comment

Popular posts from this blog

The Unspoken Trials of Indian Academia: A Closer Look at the PhD Journey in India

 Many Indian scholars who embark on a PhD journey may face challenges such as navigating a complex system of fellowships, dealing with exploitation, and encountering a preference for foreign-trained individuals. This article explores the challenges faced by Indian academia and the reasons why some Indian scholars are opting to pursue their PhDs overseas.  In the world of academia, the pursuit of a PhD is often seen as the pinnacle of intellectual achievement. However, in India, this journey is fraught with challenges that go beyond the rigors of research. Stories of student exploitation by guides, irregular fellowships, and a preference for foreign-trained individuals over Indian PhDs are all too common. For some, a PhD is seen as a way to prolong their stay in the university campus when job prospects are bleak. However, this is a far cry from the West, where a PhD is a result-oriented program, decently funded, and offers better career opportunities in the private sector. The ...
2 comments
Read more

Complex Co-Existence of Pakistan and India

 Intricacies of the Relationship Explored Pakistan and India share a rich yet intricate history that has spanned decades. These two nations have been entwined in a rivalry characterized by animosity and tension. The origins of this animosity lie deep within the historical narratives of both countries.  In the modern era, the propagation of misinformation and propaganda, primarily through social media and other digital avenues, has fueled and intensified this antagonistic sentiment. Propaganda's Disturbing Consequences:  Impact on Youth and Society The most disconcerting aspect of this propaganda is its influence on the younger generation. Pakistani children, from a tender age, are exposed to content that portrays India and its people in a negative light. These messages are carefully crafted to demonize  India and those who follow religions different from Islam. This deliberate manipulation plants seeds of enmity and hostility within impressionable minds, fostering a ...
Post a Comment
Read more