In a recent effort to elucidate the complexities of the Goods and Services Tax (GST) to the younger generation, Prime Minister Narendra Modi’s economic advisor employed a relatable example involving the iPhone. This approach aims to bridge the knowledge gap that many young people may have regarding taxation and its implications in their everyday lives. By using a globally recognized product like the iPhone, the advisor sought to make the concept of GST more tangible and accessible to Gen Z, who are often more engaged with technology than traditional economic discussions.
The advisor explained that when a consumer purchases an iPhone, the price includes not just the cost of manufacturing but also various taxes, including the GST. This tax is designed to streamline the taxation process by consolidating multiple indirect taxes into a single tax, thereby simplifying the overall structure. The example highlighted how the final price paid by the consumer reflects the cumulative impact of these taxes, making it clear that every purchase contributes to the broader economy. This clarification is particularly significant for Gen Z, who are likely to be first-time buyers of high-value products, making understanding the pricing structure crucial for informed financial decisions.
Moreover, the advisor emphasized the benefits of GST, noting that it has led to a more transparent taxation system and has facilitated smoother interstate commerce. For young individuals entering the workforce and the consumer market, understanding the implications of GST could empower them to make better purchasing decisions and engage more meaningfully in economic discussions. By relating complex economic concepts to everyday purchases, the advisor not only demystified GST but also encouraged a sense of financial literacy among the younger demographic. This initiative reflects a broader trend of using relatable examples to engage with younger audiences, ensuring that they are equipped with the knowledge necessary to navigate an increasingly complex economic landscape.
