Mains Question:
Q1. The digital economy in India is growing at a rapid pace, significantly faster than the global economy as a whole. Considering this accelerated growth, discuss the challenges with regard to taxation of digital transactions and ways to address them. (150 words)
Approach
- Introduction- digital economy and growth rate
- Major sectors influenced by the growth
- Current tax structure for digital transaction (Equalisation levy)
- Challenges/Issues
- Required measures
- Conclusion
Q2. Discuss the significance of Motor Vehicle Agreement (MVA) in realising the full potential of trade and people-to-people connectivity between BBIN countries by fostering greater sub-regional cooperation.
Approach
- Introduction- brief about MVA agreement
- Connectivity issues between BBIN countries and other issues
- Trade between BBIN nations and untapped potential
- Discuss how MVA can significantly reduce the challenges
- Conclude accordingly