Only 18% tax on hats, bird feathers and false beards. Useful.

The Goods and Services council, which means a bunch of politicians, have announced a list of products that citizens use and the rates of taxes that we will have to pay on them. Thirteen products, including human blood and bangles, made of non-precious metals, will not attract any tax. Accident victims wearing iron bangles will be happy. Oral rehydration salts, which contain sodium chloride, and nuclear grade sodium will be taxed at 5%. Instant recovery. Coronary stents, artificial kidneys and broomsticks will also be taxed at 5%. Witches will be happy. Anesthetics and all suture materials, which means all operations, will be taxed at 12%. Steam taxed at 12%. Does that mean every time we have tea we send them a cheque? Glands and other organs for organo-therapeutic (sic) uses at 12%. So, an organ used for transplant will be taxed at 12%. That will be reassuring for the dead donor. Infant use preparations, hats, false beards and bird feathers will be taxed at 18%. Mothers wearing hats and false beards can breathe easy. The rest, including toothpaste, fur and revolvers will be taxed at 28%, with the government adding cess on whatever it feels like. Politicians insist that prices of goods will go down. That remains to be seen. But, apart from food and beverages, we buy goods at long intervals. Refrigerators, cars and false beards are changed after years, and cosmetics may last a few months, but we need to use services frequently, and most of these will be taxed at 18%. Services companies will have to register in every state that they do business in, which means having to file tax returns separately in each state every month. That will need an army of accountants, adding vastly to costs, which they must pass on to customers or go out of business. Even BJP states do not trust the central government. Why? Because politicians need money for handouts they promise before elections. Even smart phones that don't work cost money, as the BJP government in Madhya Pradesh is finding out. Instead of reducing, states are taking on more debt to finance their expenditure. One year back the center increased the share of taxes of the states by 10%, from 32% to 42%, but, cunningly, it increased its tax collection by adding cess on services, which is not shared with states. So, in effect, the share of states went up by only 7.7%. No wonder, there is no trust. The government is angry that China's credit rating was increased, while ours was not. In an interview, Thomas Rookmaaker, Director of Fitch Ratings said that India needs to have a track record of reducing debt. One way to reduce debt is to allow retail inflation to increase, but that will lose elections. Hence this ridiculous list of taxes. Amusing.