EAC-PM moots single rate GST
Suggests exemption-less taxation
image for illustrative purpose
New Delhi: Economic Advisory Council to the Prime Minister (EAC-PM) Chairman Bibek Debroy on Monday said India should have a single rate GST and taxation regime devoid of exemptions.
He said the tax collection of the Centre and States combined is just 15 per cent of GDP, while the demand for government spending on public infrastructure is much higher.
"On GST, it is my submission, therefore, there should be a single rate. I don't think we will ever get it," Debroy said at an event here. If the differential tax rates for products of 'elitist nature' and those of mass consumption are done away with, it would lessen litigation, he added.
"As a polity, we need to recognise that the GST really should be the same regardless of the product. If progressivity is to be introduced, it is best done by direct taxes, not GST, or indirect taxes," Debroy noted.
As a polity, we need to recognise that the GST really should be the same regardless of the product. If progressivity is to be introduced, it is best done by direct taxes, not GST, or indirect taxes
- Bibek Debroy, Chairman, EAC-PM
