The myth of an ideal single-rate GST

The run-up to the enactment of the GST design revealed that the rate-structure dominated the Parliamentary debate on Constitution Amendment Bill. Its was intensely debated by economists and experts, besides, of course, politicians. The central idea was to arrive at a ‘Revenue Neutral Rate’ (RNR), a median rate accompanied with a merit (concessional) and demerit (akin to ‘sin taxes’) rates keeping…