December 23, 2018
PHD CHAMBER APPLAUDS FINANCE MINISTER ON RATIONALIZATION OF GST RATES
While congratulating Finance Minister Mr. Arun Jaitley on the rationalization of GST rates in 17 categories and 6 services, Mr. Rajeev Talwar, President, PHD Chamber of Commerce and Industry said in a press statement issued here today that consistent indirect tax revenue growth along with reduction in high GST rates indicate that tax base is widening and economic activity is expanding.
Realistic, pragmatic and prudent policy approach would make India a tax compliant country in the next very few years, said Mr. Talwar.
Reduction in tax rates on the items from TVs to movies tickets, marble rubble, frozen and preserved vegetables, among others is a great relief for every segment of the society, he said.
It is encouraging to note that only 28 items are left in the highest slab of 28%; the shift in items from higher tax slabs to lower tax slabs is the visible intent of the Government to constantly reforming the taxation system to make it more and more simple, said Mr. Talwar.
Going ahead, rationalization of GST rates on cement, hotel & restaurants, tourism would further enhance the economic activity and strengthen the growth of construction and tourism sectors, said Mr. Rajeev Talwar.
There is a need to consider real estate and petroleum products in the ambit of GST, said Mr. Talwar.
As Housing is a big multiplier for industrial activity and in the creation of employment for all such as unskilled, semiskilled and skilled workforce, the ideal rate for GST on housing should be at 5% with ITC (Input Tax Credits) so that there is a huge boost to employment, GDP and revenues to the centre as well as States, he said.
This will be a direct uplifting in the economic sentiment across the nation and give a big push to demand in the economy, said Mr. Talwar.
Considering the volatility in the international crude oil prices, the petroleum products should also be considered under the GST to rationalize the impact of indirect taxes by subsuming VAT and excise duties in GST, said Mr. Rajeev Talwar.
Continuous reforms in the policy environment would pave the way for higher, sustainable and strong economic growth trajectory going forward, said Mr. Rajeev Talwar.
Koteshwar Prasad Dobhal