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Posted
3 hours ago, ravishingravi said:

Not a skit

 

 

Lol, I know this a thread for funny skits..

 

But on a more serious note, that's not how it works, a country's GDP includes it's informal economy. However, estimating informal economy is not easy, there is a margin of error, in Pakistan's case that margin would be a bit higher given how much weak institutions and poor infrastructure they have, that would put their informal economy may be around 30 to 35%, bringing the actual size of their economy close to $500 billion, $1 trillion is absolute bollocks.

 

India's tax to gdp ratio stands at around 11-12%, China's tax to gdp ratio is around 17-18%, given the stronger institutions, the informal size of Indian economy would be at 15-20%, close to $800billion, China's informal economy should also be around 10-15% about $2.5 to $3.5 trillion.

 

However, that's not a good thing, and it's quite counter productive, as most tof he illegal trade and smuggling goes unnoticed, plus the govt loses the tax revenue that could be used for public welfare, building infrastructure, improving the economic growth. The reason why the reforms like GST, digitization like UPI are important because they help move the informal sector to formal sector; however lot more needs to be done on the reforms like Police, Judicial, farm laws, land and labour etc..

Posted
On 5/24/2025 at 4:26 AM, ravishingravi said:

Not a skit

 

 

If it can motivate people to pay taxes, should be tried in India too 

Posted
33 minutes ago, Lord said:

If it can motivate people to pay taxes, should be tried in India too 

India has Gabbar Singh Tax collected by both Center and State. IT is hardly a percentage 

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