KOCHI: A single slab for Goods and Services Tax (GST) would have resulted in regressive taxation system, says finance minister Thomas Isaac. Speaking after inaugurating a two-day seminar on GST organised by the Institute of Chartered Accountants of India, Dr Isaac said fundamentalists may argue for single GST rate. Describing his vociferous stand for differential rates, he said there was no justification for a lower rate for luxury consumption goods.
“In the GST council, nobody questioned my logic when I asked why should luxuries presently having a tax rate of 40 per cent be brought down to a lower rate in the GST regime,” said the minister. He also pointed out that except in one or two countries, globally the accepted practice is differential rates. The minister said GST will have a positive impact on national output, national income and inflation. “Increase in national income by 2 per cent may be an exaggeration. However, it will go up with the implementation of GST, mainly due to efficient distribution of labour and export exemption,” he added.
The minister also sought inputs of the ICAI and its members for efficient implementation and administration of GST. Pullela Nageswara Rao, chief commissioner of Central Excise, Customs and Service Tax and many others were present at the inaugural function. More than 1,500 delegates from all over South India are attending the meet.
