New Delhi, Oct 1: While addressing at the “Foundation Day” event organized by National Academy of Customs, Indirect Taxes and Narcotics (NACIN) in Delhi Finance minister Arun Jaitley said,”those who are demanding development must be ready to compromise.”
He also said that revenue is like a lifeline for government and it will help India to become a developed country from a developing nation.
“In a society which did not conventionally mind being a non-tax complaint one, people are realizing the virtues of compliance which comes with the passage of time. This is the reason for tax integration. Once the change is established, we will have scope and space for improvement. And once we become revenue neutral, we need to think of better reforms,” he added.
Meanwhile pointing out the poor condition of Indian Economy Jaitley said, “India is going through indirect taxation at a time when the economy is growing. A direct tax is paid by the more affluent sections, while the indirect tax is a burden on all. This is why, in our fiscal policy, we try to make sure that basic commodities are least taxed.”
Earlier he said that Goods and Services Tax (GST) slabs may be lessened in the future if a “revenue neutral plus” tax level is attained.
According to the minister, reduction in tax slabs under the current GST regime can take place, but only after the GST regime reaches a “revenue neutral plus” level.
The center implemented GST in a view to replace around a dozen central and state taxes into a single national tax.
Presently, GST have four tax slabs of 5, 12, 18 and 28 per cent, plus a levy on cesses on luxury items like cars, aerated drinks and tobacco products to compensate states for any revenue losses in the first five years.
An overwhelming 81 per cent of articles under the GST regime attract tax of 18 per cent or below and only about 19 per cent of items are taxed at the highest rate of 28 per cent.
In the same programme