GST and Compliance Cost Burden

  • Dr. Tanu Varshney, Assistant Prof., Department of Economic, SV College, Aligarh

Abstract

The burden on SMEs, especially the tax on goods and services (GST), which acts as an 'unpaid tax collector', is now a subject of much political controversy in Australia. However, there are very few realistic suggestions on how this burden can best be reduced and in the meantime. This article discusses international estimates of the costs of compliance with SMEs, such as GST, and clearly illustrates the relatively large burden that regression and SMEs face. We recognize the importance of compensation, including the benefits of cash flow and management, to take into account the relevance of GST start-up costs and recurring costs for SMEs. An important part of this article discusses four important ways to alleviate the burden of 'GST documentation' for SMEs. Increasing the GST registration threshold level; an improved tax payment scheme; And taxpayer training. In view of the experiences of Great Britain and France, the expansion of existing policies in Australia, in particular the streamlined tax system seems the best prospect. Such policies, however, must be carefully written rather than emphasizing some degree of innovation and tax revenues.

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Published
2018-04-12
Section
Conference Paper