New Delhi: Goods and Services tax (GST), the much awaited economic reform, is all set to be launched after two days. In an exclusive interview with Mihir Bhatt, Editor, Zee Business, Finance Minister Arun Jaitley discussed in detail how this will be a landmark reform in the history of the country.
Discussing various intricacies associated with GST, FM Jaitley explained how more efficient tax system will lead to increased compliance in the country.
The finance minister also expressed hope that realty sector and petroleum products will come under the ambit of GST sooner or later. He said, “ Since revenue evasion is massive in real estate sector and petroleum, so states will benefit the most through this.”
He added, “ I feel that when GSTN stabilises, people of the country will see the beenfits.”
Alleviating fears about GST leading to rise in inflation, Jaitley said that GST is not at all inflationary in character. On the other hand, possibility of an increased tax collection is high.”
Discussing about tax slabs, Jaitley said that government couldn't settle for lesser than four tax slabs – 5%, 12%, 18% and 28% - as it could have been inflationary. Fixing one or two tax slabs means shifting lower taxed products to higher category leading to inflation.
Talking about how introduction of GST will change business scenario in the country, he said, “ tax evasion will reduce and proper checks and balances will emerge because of GST. There may be some hiccups earlier on, but they will get resolved within hours.”
Jaitley said, “ Tax compliances increase with a more efficient system in place.”
Watch the full video below:
