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by danielfoster
922 days ago
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India's informal "shadow" economy makes up nearly 40% of GDP. There are clear advantages to maintaining proper books, such as improved planning and better access to credit. But do you think the smaller merchants this tool is designed to help will want to move into the formal economy and accept the responsibilities-- namely higher taxes-- that go alongside this? Or is tax evasion generally not an issue among smaller merchants in India? |
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I've read income tax evasion is nearly endemic there, but don't know how reliable that was. In retail the more likely problem is avoiding collecting sales taxes etc, but India has a goods and services tax which means most of that is baked in by the time you hit retail.