GST will reduce tax burden by 25-30 per cent: Bhide
24 Dec 2009
Revenue secretary P V Bhide said on Wednesday that the tax burden on the public will come down by 25-30 per cent with the introduction of the proposed goods and services tax (GST), which seeks to unify various levies like excise and VAT.
Speaking at a conference organised by industry body Assocham in New Delhi, Bhide also said that the GST would greatly enhance the competitive edge of both the manufacturing and services industries.
"Distortions in the indirect tax system will be fully removed and addressed after the GST is put in place. The burden on taxpayers will be reduced by between 25-30 per cent, and the new system will ensure complete transparency and facilitate smooth tax compliance," Bhide said.
He also said the draft legislation on GST has been referred to legal experts and would be finalised shortly.
The government plans to introduce GST from 1 April 2010. The new tax regime will replace excise duty and service tax at the central level and value added tax at the state level, as well as the cess, surcharges and local taxes being levied on good and services.
However, there are doubts about whether the GST can be implemented from the start of the next fiscal. A task force of the 13th finance commission has suggested postponing GST implementation by six months to 1 October 2010. (see: GST implementation by 1 April looking unlikely)
