Economic advisory council chairman Bibek Debroy said,
“The government was losing revenue due to the goods and the service tax and GST
According to the Indian economist’s statement,
The ideal GST has a single rate, and it was meant to be revenue neutral. When it was introduced, there were some calculations done by the Ministry of Finance.
They say,
To be revenue neutral, the average GST rate must be at least 17%.
The average rate now is 11.4%. So because of GST, the government is losing revenue.
Bibek Debroy also says that as well as all the members of the GST council want to have the 28% tax rate reduced. But no one wants the 0% and the 3% rates to go up.
According to him this way
we will never have a simplified GST,
He also spoke at an event that will go to be calculated by the Calcutta Chamber of Commerce in a special session. Bibek Debroy also says,
GST Council wants the 28% tax rate to come down, but “no one wants the 0% and 3% tax rates to go up
If the government needs to spend, it needs revenue… 10% of GDP must be spent on health and education, 3% on defense, and 10% on infrastructure. However, we as citizens pay around 15% of GDP as taxes. What this means is we pay taxes at 1%, but our demands and expectations from the government are to the extent of 23%,
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