Customs Commissioner S.K. Rahman said there was no need for despondency as far as the Goods and Services Tax (GST) was concerned as its roll-out has begun during the previous Finance Minister’s tenure.
Various taxes were harmonized and 33 types of levies were abolished to make things simple for the trading community. It’s a matter of time before this most-wanted piece of legislation becomes a reality, he said.
Delivering a special address on indirect taxation at a post-budget analysis session organised by the Confederation of Indian Industry (CII) here on Thursday, Mr. Rahman said custom and excise duties and service taxes would mobilise Rs.7.8 lakh crore in 2016-17. Excise duties alone contribute to Rs.3.75 lakh crore.
An indirect tax dispute resolution mechanism envisaged by the Finance Minister was a step in the right direction as tax litigation proved to be a major impediment to growth.
Allowance of deferred payment of custom duties for certain classes of exports and imports would help in improving the ease-of-doing-business ranking, Mr. Rahman said, adding that continuous efforts were made in conformity to the principles laid down by bodies like the World Customs Organization for effective rationalization of the tax structure.
CII Vijayawada Zone Policy Panel Convener J.S.R.K. Prasad said the budget did not adequately address the core issue of improving India’s competitiveness in the manufacturing sector against the backdrop of China rising as the global economic superpower. It was manufacturing that catapulted China into the league of industrial giants, he observed.
CII Vijayawada Zone Chairman G. Venkateswara Rao, past chairmen D. Ramakrishna and M. Lakshmi Prasad and Vikas Dhariwal and T.R. Venkateswaran, Associate Directors of Pricewaterhouse Coopers India addressed the gathering.