Economic In-equality:  A Real Concern

There is all the difference in the world between treating people equally and attempting to make them equal …. Friedrich Hayek

Come 2016 and Government of India is all set to roll out the largest indirect tax reform in the form of Goods and Services Tax (GST) since the introduction of the value-added tax (VAT) in 2005. This revolutionary system will convert the country into unified market, replacing most indirect taxes with one tax. In past the VAT was introduced by Government to simplify the tax structure and make it more transparent, thereby increasing its revenue by bringing all traders under the tax net . However in long run, the net result of VAT was clearly seen in the form of increased prices of numerous commodities, putting an increasing burden on common man who is already reeling under deep pressure of various other taxes. Persistent and increasing economic hardship ultimately drives the poor to resignation that they cannot improve their lot. As a result, they take their condition as hopeless and lose all motivation to engage in productive work other than that needed to meet their basic requirements. In such a state they stop identifying with the society and state of which they are a part and begin to see themselves as victims of a predatory and unjust system that exploits their labour in return for meager gains. Their resentment is further fuelled by the conspicuously materialistic lifestyles of the rich, which creates unnecessary desires and aspirations in the minds of the poor. Thus, in the absence of a strong moral foundation, these desires very easily lead people to unlawful activities and even serious crimes which can be clearly seen in and around the society we live in. One cannot deny the fact that the increasing crime graph of our cities is a product of this increasing economic inequality in the society

By Rajyogi Brahmakumar Nikunj ji

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