Can have 2 rates as revenue increases, says Arun Jaitley on 2 years of GST | Latest News India - Hindustan Times
close_game
close_game

Can have 2 rates as revenue increases, says Arun Jaitley on 2 years of GST

Hindustan Times, New Delhi | ByRajeev Jayaswal
Jul 01, 2019 12:45 PM IST

Arun Jaitley’s first blog on GST is his first after he opted out of Prime Minister Narendra Modi’s council of ministers in end of May. His previous blog was on exit polls predicting a clear win for PM Modi on May 20.

Former finance minister Arun Jaitley on Monday said with the increase in revenue the country may effectively have two rates for the Goods and Services Tax (GST). He, however, ruled out a single slab GST saying that such a system is possible only in “extremely affluent” countries where there are no poor people.

Former finance minister Arun Jaitley on Monday said with the increase in revenue the country may effectively have two rates for the Goods and Services Tax (GST).(Mohd Zakir/HT PHOTO)
Former finance minister Arun Jaitley on Monday said with the increase in revenue the country may effectively have two rates for the Goods and Services Tax (GST).(Mohd Zakir/HT PHOTO)

“As revenue increases further, it will give an opportunity to policy makers to possibly merge the 12% and 18% slab into one rate, thus, effectively making the GST a two rate tax,” he said in his blog ‘Two Years After GST’.

Hindustan Times - your fastest source for breaking news! Read now.

Jaitley is the architect of the country’s biggest indirect tax reform, which was rolled out in 1 July 2017 when he was the finance minister. This is Jaitley’s first blog after he opted out of Prime Minister Narendra Modi’s council of ministers. His previous blog was on exit polls predicting a clear win for PM Modi.

Also read: 2 years on, a look at the hits and hurdles of Goods and Services Tax

Jaitley said India cannot have one single rate of GST. “It would be inequitable to apply a single rate in countries where there are a large number of people below the poverty line,” Jaitley said in the blog.

“The direct tax is a progressive tax. The more you earn, the more you pay. An indirect tax is a regressive tax. In the pre-GST regime, the rich and the poor, on various commodities, paid the same tax. The multiple slab system not only checked inflation, it also ensured that the Aam Aadmi products are not exorbitantly taxed,” he said.

Follow Parliament session live updates here

He said a ‘Hawai chappal’ and a ‘Mercedes car’ cannot be taxed at the same rate. “This is not to suggest that the rationalisation of slabs is not needed. That process is already on. Except on luxury and sin goods, the 28% slab has almost been phased out. Zero and 5% slabs will always remain,” he said.

Unveiling Elections 2024: The Big Picture', a fresh segment in HT's talk show 'The Interview with Kumkum Chadha', where leaders across the political spectrum discuss the upcoming general elections. Watch now!

Get Current Updates on India News, Election 2024, Arvind Kejriwal News Live, Bihar Board 10th Result 2024 Live along with Latest News and Top Headlines from India and around the world.
SHARE THIS ARTICLE ON
Share this article
SHARE
Story Saved
Live Score
OPEN APP
Saved Articles
Following
My Reads
Sign out
New Delhi 0C
Thursday, March 28, 2024
Start 14 Days Free Trial Subscribe Now
Follow Us On