The chairman of PMEAC advocated a GST rate, suggested to abolish the income tax exemption too!


PM Economic Advisory Council: Debroy, chairman of the Prime Minister’s Economic Advisory Council, has suggested only one GST rate (Goods and Services Tax Rates). Not only this, Vivek Debroy has also advocated abolishing the tax exemption given in Direct Tax. At present, there are four slabs of GST rates, while on the direct tax front, there are many types of exemptions for taxpayers in income tax.

There should be only one GST rate!
Vivek Debroy said that it is my opinion on GST that there should be only one tax rate. However, he also made it clear that, I do not think that this will ever happen. He said that, we need to understand that whatever be the product, the GST rate should be the same. However, he clarified that his idea should not be considered as the suggestion of the Prime Minister’s Economic Advisory Committee as it is his personal view. He said that if we want to show progress, it should be done through direct tax and not through GST or indirect taxes. Vivek Debroy said that the tax collection of the Center and the states is only 15 percent of the Gross Domestic Product (GDP), while the demand for government spending on public infrastructure is much higher.

At present there are four slabs of GST rates.
One Nation One Tax (GST) was implemented on July 1, 2017. There are four labels in GST: 5 per cent, 12 per cent, 18 per cent, 28 per cent. Cess is also levied on certain items which attract 28 per cent GST such as luxury cars and tobacco.

Suggestion to abolish tax exemption!
Vivek Debroy has also suggested to abolish the exemptions given in direct tax. He said that we should be ready to pay more tax or be ready to face shortage in public facilities or services. He said that every year in the budget paper, there is talk of loss in revenue due to tax exemption or concession, which is close to 5.5 percent of GDP. In such a situation, the question arises whether this exemption should be done. He has advocated for eliminating any distinction between personal income tax and corporate tax system. He said that this will reduce the burden of administrative compliance.

latest video

read this also

Multibagger Stock: Ashish Kacholia invests in multibagger stock giving splendid returns, is this stock in your portfolio!

,



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *