Why not subsume smuggling as well?

The Goods and Services Tax regime will start on 1 July. It is supposed to be a simplified structure for collecting indirect taxes on goods and services. The most important word is 'subsumed', which is being repeated like a mantra by politicians and civil servants, to lull citizens into believing that it will be good for us. Thus, sales tax will be subsumed, VAT will be subsumed, excise will be subsumed, the whole country will be subsumed. Subsumed we maybe, but it will not be simple. There will be 4 rates -- 5%, 12%, 18% and 28% and the government has the leeway of adding cess, according to its whims, taking the rate up to 40%, which means different levels of cess on different items making the whole thing totally confusing and giving a golden opportunity to tax fellows to increase their earnings. Gold will be taxed at 3%, but import duty of 10% will be retained, taking the total to 13%. Clearly gold will not be subsumed. Rough diamonds will be taxed at 0.25%. When the price of one gram of gold is Rs 280 higher in India compared to Dubai then the profits from smuggling become huge. Apparently, smugglers have trained their rectums to hold gold biscuits. "A smuggler bringing gold pieces concealed in his rectum is often an expert. That's because not anyone can move with ease when gold pieces are in the rear," said an official. "We practice to carry the gold and walk and sit normally to avoid customs officials," said Sajilal, who earns Rs 50,000 per kg of gold smuggled into India."There are a few exercises we do that make work easier and help us to carry more gold. The maximum one can carry in the rear is up to 800 grams broken into pieces." Clearly, rectums must be subsumed. The problem with high taxes is that businesses migrate to nations where taxes are low and transparent. That is why foreign investors choose to come into India through Singapore. Not just foreigners, Indian businesses also choose to set up their headquarters in Singapore. The list is a who's who of Indian business names. So, high taxes result in lower revenues. Alcohol, real estate and petroleum products, which constitute 37% of state taxes, have not been subsumed. GST on air travel seems reasonable, with 5% tax on individual and and 12% on business travelers but other charges are among the highest in the world. Fares for flights are predicted to go up. For a return flight to Belgium from Delhi, the Passenger Service Charge at Delhi Airport was $46.85 plus a Passenger Service Fee of $3.74, for a total of $50.59. The Charge at Belgium was $29.30. FMCG companies are quietly decreasing contents of various products so that they are not accused of increasing prices when GST comes in. Pity we cannot subsume our politicians.