GST: Uniform tax rate of 16% should be implemented, collection is decreasing due to higher rates

New Delhi| Goods and Services Tax i.e. GST should be implemented at a uniform rate instead of multiple rates. Along with this, instead of increasing the tax rate, its scope should be increased. P., former chairman of the Central Board of Indirect Taxes and Customs.C. Jha said, more people will come under the tax net and tax collection in the government treasury will also be higher.

At the seminar organized by the Think Change Forum (TCF), P.C. Jha said, we have many rates in GST. This is not correct. In such a situation, it would be right to consider three rates. Tax authorities must understand that high rates encourage tax evasion. The size of illegal trade is increasing in India. The main reason for this is high taxes.

This has an adverse effect on the country’s economy. Rajeev Chugh, partner, Ernst & Young LLP, talked about simplifying the existing provisions in the taxation system. Reduction in tax rates will increase people’s disposable income. Companies will also be able to spend more. If this is rationalized, it can boost the economy.

Rajat Mohan, senior partner, AMRG & Associates, said tax-related departments are heavily dependent on litigation revenue to meet their targets. However, the government’s success rate in litigation is disappointing. The government loses more than 50 percent of the lawsuits before they reach the Supreme Court.