Marking the first anniversary of the implementation of GST, Prime Minister Narendra Modi hailed the benefits of tax policy and said that it has helped in consolidating Indian cooperative federalism and is designed to eliminate the “inspector raj”.
Prime Minister Narendra Modi on Sunday ruled out a single tax rate under the GST, saying Mercedes car and milk cannot be taxed at the same rate, saying the Congress’ demand for a uniform 18 per cent rate would lead to a spike in food and essential items’ taxation.
The Prime Minister, according to a part-transcript of the 45 minute interview posted by Swarajya on its website, said that it is not possible to assign one slab for all the products. “Can we have milk and Mercedes at the same rate?” he questioned.
Speaking to Swarajya Magazine, the Prime Minister dismissed Opposition’s allegations that the tax policy is “too complex”.
PM Modi said the Goods and Services Tax (GST) has within one year of its launch led to over 70 percent jump in indirect taxpayer base, demolished check-posts and merged 17 taxes and 23 cesses into one single tax.
The new tax regime, which subsumed central levies like excise duty and service tax and state taxes like VAT, is aimed at making indirect taxation “simple” while eliminating the inspector raj, he said, adding the GST is an evolving system which is calibrated based on feedback from state governments, trades and other stakeholders.
The Prime Minister also highlighted the positive impact of GST on logistics industry as it led to the abolishment of check-posts on state borders thus saving crucial time, resources and money; and thereby improving the productivity of the country.
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