Broad consensus on purchase tax on farm produce: GST panel chief

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BENGALURU, OCTOBER 6:
There is a broad consensus on imposing purchase tax on agriculture produce, KM Mani, Chairman of the GST Empowered Committee and Kerala Finance Minister, has said.

Speaking at an Assocham seminar on ‘[email protected]: Issues and Solutions’, Mani said finer details are being worked out on this issue and will be in public domain shortly. Though GST tax base will be widened and collection is expected to be much higher under the new tax regime for both the Centre and the States, Mani said “It will also promote ease of doing business and boost the GDP.” “GST will be a very efficient system of tax collection as there will be no scope for evasion. Safety and security measures shall be taken care of,” Mani added.

With many villages without electricity in India, Mani said the issue of rural electrification is being addressed to ensure smooth implementation of GST.

Hoping that the GST constitutional amendment will be cleared during the Winter Session of Parliament, Mani said the new tax regime will replace multiple indirect taxes and will be implemented with effect from April 1, 2016. “GST is necessary for India’s economic development,” he said and added that “consumers are paying about 29 per cent both visible and invisible taxes and hopefully GST will be on a lower side.”

(This article was published on October 6, 2015)

Source : http://www.thehindubusinessline.com/economy/broad-consensus-on-purchase-tax-on-farm-produce-gst-panel-chief/article7731248.ece

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