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Niti Aayog Vice-president: 4-tiered GST safe
Posted on: 26/Oct/2016 10:00:48 AM
The Vice-president of Niti Aayog (National Institution for Transforming India), Mr. Aravind Panagariya, has informed that the proposed 4-tiered GST system by the central government is safe.
Mr. Panagariya confirmed that the 4 tiered GST system would ensure that the inflation comes down and also the new lower taxes will benefit the consumers.
He told that the new GST would ensure uniform tax for the products throughout the country. There is no need to explain the breakup of taxes. A single format tax system is far better as compared to a double-tax system.
The vice-president informed that the 3rd meeting of the GST Council is scheduled shortly. Some states have protested against the central government’s proposed imposition of additional taxes on luxury items, tobacco products and pan masala. Further, the central government has come forward to offer a compensation of Rs. 50000 Crores to offset the revenue loss incurred by the states with the new GST system. The central government would recover this compensation offer through additional taxes.
The central government has already explained the details of the proposed 4-tiered GST. The permanent tax will be 12-18 percent. For food items and other essential items, it will be 6 percent. For luxury items, it would be 26 percent.
It is important to note that the central government is set to implement the new 4-tiered GST system right at the start of the next financial year from 1st April.
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