India not interested in high sales tax rate – Finance Minister

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Finance Minister Arun Jaitley speaks during a conference on the "Regulatory Framework for International Financial Services Centre (IFSC) in India" at Gandhinagar in Gujarat April 10, 2015. REUTERS/Amit Dave/Files

 

(Reuters) – The central and state governments are not interested in imposing higher goods and services tax (GST) rates that could hurt people, Finance Minister Arun Jaitley told lawmakers in the lower house of parliament on Wednesday.

The proposed GST would harmonise a mosaic of state and central levies into a national sales tax which business and policy makers hope would boost manufacturing and reduce corruption.

A government think-tank proposed the GST rate be set at 27 percent, well above the global average of 16.4 percent for similar taxes.

Jaitley said the proposed rate would be too high and needs to be “much more diluted”.

(Reporting by Rajesh Kumar Singh and Manoj Kumar; Editing by Malini Menon)

Source: Reuters

4 Replies to “India not interested in high sales tax rate – Finance Minister”

  1. JAYAKUMAR says:

    rate of tax will be reduce

  2. Subhash Shaw says:

    How GST will help in generating employment in todays Indian economy by taking aside of the workers of Service Tax Dept., Central and State Sale Tax Dept’s.

    What for those who are indirectly depends upon the indirect tax offices for their livelihood.

    Definitely revenue will increase but the main role of govt. is to maintain equality for basic needs inspite of raising in govt. revenue.

  3. Thankyou Mr. FM

    We support you, try to levy the global average 16.4% GST in India and fuel growth of business.

    Do see to it that the IT Infrastructure is well set for the implementation in advance so that there is no confusion.

    Do not worry that the Tax officers would lose their Jobs, they will get consumed as resources elsewhere and would be part of the system to fuel growth instead of being an obstruction to growth as it has been happening today.

    JaiHind
    D.Arunkumar Yashika Industries http://www.yashikaa.in

  4. ARUNKUMAR D KULKARNI SANGLI TAX CONSALTAX says:

    G S T ACT is good & bewitfull ACT

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