New Delhi, Dec 16 (IANS) Reforms in India’s tax regime, including the proposed GST, will help the country shift to an efficient and clean system rather than a nation that practiced “tax terrorism”, Chief Economic Adviser Arvind Subramanian said on Wednesday.
“We can really change the country’s image that till recently practiced tax terrorism to one that really has a clean, efficient, modern broad-based tax system for the future and it could be one of the major reforms going forward,” he said.
He was speaking at an interaction organised with Finance Minister Arun Jaitley on the Goods and Services Tax by major chambers and groups of commerce and industry.
Noting that elimination of taxes on inter-state trade through GST would “make one India” and provide a buoyant source of revenue in future, Subramanian said: “At the same time, the government is eliminating exemptions in corporate taxes.”
“…the highest slab of corporate tax will come down,” Jaitley said later at the event.
In a recorded video message played at the event, IMF Managing Director Christine Lagarde said the GST was like India signing “a trade agreement with itself” that will broaden the country’s tax base.
“The implementation of GST will help India create jobs and help in raising revenue to finance health, education etcetera,” she said.