Ex-Chief Chief Economic Advisor ( CEA ) Arvind Subramanian has raised voice for simplification of Goods and Services Tax ( GST ) Regime and cess cuts.
India’s Goods and Services Tax ( GST ) system remains highly complex, with over 50 different cess rates, a number that could rise to 100, according to former Chief Economic Adviser Arvind Subramanian.
He stressed the urgent need to simplify and rationalize the tax structure, highlighting concerns about excessive tax demands and the issue of “tax terrorism” under the current regime.
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Speaking at an event organized by the Centre for Policy Research, Subramanian noted that the GST system, introduced in 2017, has become increasingly complicated with its numerous cess rates. He pointed out that, while GST was designed to streamline India’s indirect tax system by subsuming over 16 taxes and cesses, it has instead led to mounting challenges, including a rise in aggressive tax demands.
Subramanian emphasized that simplifying GST and rationalizing its rates would not only address these issues but also help boost revenue generation. He argued that the phenomenon of “tax terrorism” has escalated under GST, adding further urgency to the need for reform.
India’s GST, rolled out on July 1, 2017, was meant to unify the country under a single tax system, promoting “One Nation, One Tax, One Market.” However, Subramanian’s comments reflect growing concerns about its complexity and its impact on businesses and taxpayers.
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