|Published : 13 Apr 2017, 20:41:39|
India firm on July 1 sales tax launch
A finance ministry official said on Wednesday India would launch a new national sales tax as planned on July 1 to boost economic growth and state revenues, despite calls from some businesses for a delay, reports Reuters.
The federal and state governments were ready to roll out the Goods and Services Tax (GST), said Revenue Secretary Hasmukh Adhia, adding that firms should not count on a postponement of a tax more than a decade in the making.
India’s most ambitious tax reform since independence would transform its $2.0 trillion economy and the market of 1.3 billion people into a single economic zone with common indirect taxes - something that neither the European Union nor the United States can boast.
And, although the GST is designed to be revenue neutral, Adhia expects it to improve compliance by businesses as well as draw their owners into the income tax net, thus boosting overall tax revenues.