New Delhi: Lok Sabha today passed the Good and Services Tax (GST) Bill amid walkout by Congress members.
Union Finance Minister Arun Jaitley said that GST will reduce prices in the long run and boost economic growth.
“I don’t forsee any state losing revenue after roll out of GST,” he added.
The central and state governments are not interested in imposing higher goods and services tax (GST) rates that could hurt people, Jaitley said.
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”.
Jaitley said, “GST will lower inflation slightly and will give fillip to the trade and after GST there will be no tax on tax. The whole process of indirect taxation will change once GST is implemented.”
Jaitley further said that GST has the potential to boost India’s GDP. GST will make India a single market.
“This bill has gone through the Standing Committee for two and a half years. It has been before dozens and dozens of empowered committees. Only then has a consensus happened. I beseech you to rise above party considerations,” Finance Minister Arun Jaitley said.
“If all our CMs agree why are we delaying it? And that means your states will suffer,” he added.