The Andhra Pradesh Chambers of Commerce and Industry Federation (APCCIF) called upon its members to join the online campaign on www.change.org and www.avaaz.org for early roll-out of Goods and Services Tax (GST).
APCCIF Executive Director P. Bhaskar Rao stated in a press release that GST could be traced back to the report of Kelkar task force on the implementation of Fiscal Responsibility and Budget Management Act, 2003.
The original proposition for the GST was with the primary objective of controlling the budget deficit and mitigating the shortcomings of the existing indirect tax machinery, particularly for eliminating multiple taxes. It was to be introduced by April 1, 2010 but was deferred several times in Parliament due to lack of consensus.
Mr. Rao explained that GST was a single tax that will cover all goods and services across the country. Octroi, CENVAT, Central and States sales taxes, entry tax, license fees, turnover tax etc. will come under the GST umbrella.
GST is expected to add over 1.5 percentage points to GDP growth and also enhance export competitiveness, ease of doing business and lower the costs for industry.
Mr. Bhaskar Rao further said that more than 45,000 people including country’s top industrialists have launched a signature campaign urging the Members of Parliament to allow the Parliament to function, debate and legislate and pass important legislations like the GST.
Unless the industry and entire business community mounted pressure on the government, GST will not become a reality. Till this happens, various taxes will act as a drag on the economy at a time the global financial turmoil exerted tremendous pressure on developing countries.