Goods and Services Tax bill may miss the deadline of the 2012 implementation. It was introduced in the parliament on Tuesday but due to parliament adjournment, there wasn’t any discussion on it. It is one of the most important and ambitious project of the UPA in its second term. The bill is to amend the constitution and introduce a nationwide Goods and Services Tax. It will reduce the cost and boost the business in the country.
Currently, there is a parallel tax system of indirect taxes at the central and state level. This is not only complicated but also pushes the prices up. In the union budget of 2006-07, then finance minister had announced that India need to streamline the tax system and this bill is meant to do that. It is a comprehensive system which will levy the tax at the national level on manufacture, sale and consumption.
It has already been delayed by two years and with the current instability in the politics, it is quite hard to expect it to happen in the current session. Opposition parties are furious over corruption scandals and their support is imperative for the bill to be implemented. Bill requires approval from two third of the parliament and half of the 28 states to become the law.
Most of the opposition ruled states are opposing this bill. This bill is very important for the streamlining the goods and service tax system. Unstable Geo-Political situation is already affecting Indian stock markets. If bills like this are not implemented on time, it can further impact the investor’s sentiments. Inflation is already soaring high and there are concern regarding Indian economical growth in short term.
It is very important to streamline the tax system. It will not only help country to control and maintain cost but will also help in terms of government earnings from the taxes.
About akhilendra
Speak Your Mind