The new tax regime is scheduled to be rolled out from April 1, 2016 after the necessary constitutional amendment in the next session of the Parliament.
Currently visiting Washington to attend the annual Spring meeting of the International Monetary Fund and the World Bank, Jaitley was speaking on contentious taxation issues at prestigious Peterson Institute for International Economics – a think-tank.
In his effort to address the concerns of the US corporate sector related to taxation system, Jaitley said his government intends to rationalise the taxation system and make the tax department friendly to the assessor itself.
Jaitley said the government is working hard on unaccounted money and assets, undertaking steps which include increasing cashless transaction and bringing the black money back into the system.
Several legislations are being brought in the coming session of the Indian Parliament. All these efforts, coupled with reforms, and increased FDI investment in sectors like infrastructure would collectively increase the GDP of the country, he said.
As the country has already hit 7.5-8 per cent growth, it is very much possible to achieve a double digit growth, the Minister said.
He assured American corporate sector that there will be no retrospective taxation system in India, but did acknowledge that there are a few issues that his government has inherited from the previous regime and is working to address those.
The implementation of the landmark goods and services tax (GST) regime proposed from April 1 next year would increase India’s GDP by one to two per cent, Finance Minister Arun Jaitley said today.
“This (GST) has the potential to push India’s GDP by one to two per cent,” Jaitley said here, adding that the landmark constitutional amendment would immediately convert India into a one big uniform market, which will benefit all stakeholders.
Source : PTI India