Option 2 will kill the local economy. Raising the sales tax will increases the prices of commodities, people will spend less which means business will loose money and will lay off staff, which will in turn mean less buying power and the vicious circle will spiral out of control.
In place of raising GST i recommend increasing custom tax on imported goods, this will actually help the local manufactures and also reduce the import bill in the long term.
Option 2 is sales tax and it will have minimum impact on Poor , the more expensive your good is the more tax you pay
For Poor : If you bought 2 Roti it would mean you can afford 1.75 Roti
For Rich : If you bought a 70,000 BMW you will pay 21,000 Dollar taxes
Example:
- Lets Assume Bun Kabab sells for 400 rupees , with tax it will be 520 Rupee still very much affordable, that extra 100 rupee will not make a dent
Option 3:
I like Option 3 because it is
Brute Force no one gets away
It's ideal for Stubborn people who use every trick in book to by pass taxes
a) If you have a physical Shop you have to have a permit or your shop is closed down
(1,000 Rupee per small shop monthly) , you can't hide your shop !!! Your business
b) If you have a car/motorcycle/bus/truck , you need to buy a pass to drive that on road (100 rupee valid for 30 days) ,
I mean you can't fake it or get away you need to be on the road daily so you will 100% pay that 100 rupee for 30 days (1 month Pass)
Simple check points can enforce PASS CHECKS for 100% compliance
c) Cell phones are simplest , right from telecom company , every phone = confirmation you have phone you recharge and money can be easily collected
d) Every one sacrifices an animal , and if you can buy a 3-4 Lakh animal I am sure you can buy a 10,000 rupee permit
Option 2 / Option 3 together might be too much too quickly , but
Option 3 would be easily absorbable
