Any Govt. will need very good Tax collection so that they can spend it in the development of the country. Recently India switched to GST which is one uniform tax throughout whole India and which is really very good.
Govt. Also reduced the GST on many items to keep inflation and price down. For example Govt reduced GST on dining out but I feel this is just a short term benefit.
Here are my observations:
1) Because of reduced GST cost of eating out became less but many companies increased their prices and pocketed more profit and the benefit of reduced GST hardly passed to the consumers. I know there is anti-profiteering law but not sure how much it was helpful in checking the prices.
2) Also If I don’t eat out, I don’t get any benefit of reduced GST on eating out.
3) In short time the eateries will increase their price and so the benefit of reduced GST is never passed to consumers. So by reducing GST on eating out, neither Govt benefits nor the common man.
4) Now instead of this, had Govt reduced Direct taxes it would have benefitted more. I will have more money and I can decide where I can spend. I have full control of the money and I can spend it more wisely.
PS: I am not a Tax expert but a very common man, and I feel reducing Direct tax will benefit me more than reducing Indirect taxes.