Many people get the idea that tariff is bad, and that GST is good.
If they think through the mechanics, they will realize that it should be the other way round, i.e. tariff is good and GST is bad.
Why? Here are the reasons:
Why? Here are the reasons:
a) Tariff is collected in bulk at the point of import. GST is collected individually on every small piece of item that is sold. The cost of collecting GST is much higher than tariff.
b) Tariff can be selective, according to type of product. Groceries and medicine can be exempted. It is difficult to differentiate it for GST as there are so many individual decisions to be made.
c) Tariff can be used to protect local industries and jobs.
d) As a revenue measure, the govt can impose excise tax on local manufacture at the same rate as tariff or at a lower rate, to help local industries.
Vote here:
https://tklcloud.com/Feedback/feedback2.aspx?id=1465
b) Tariff can be selective, according to type of product. Groceries and medicine can be exempted. It is difficult to differentiate it for GST as there are so many individual decisions to be made.
c) Tariff can be used to protect local industries and jobs.
d) As a revenue measure, the govt can impose excise tax on local manufacture at the same rate as tariff or at a lower rate, to help local industries.
Vote here:
https://tklcloud.com/Feedback/feedback2.aspx?id=1465
No comments:
Post a Comment