The Confederation of Indian Industry (CII), the country’s premier trade body, favours an 18 per cent cap on GST rate, said its president Naushad Forbes.
The rate should not lead to inflationary pressures and for smooth implementation of the GST regime, the Centre and States would have to move in a synchronised manner, Mr. Forbes said.
“A maximum rate of 18 per cent would be fine for two reasons,” he said.
Revenue neutrality“First, the rate should be revenue neutral as it is nobody’s intention to increase or decrease the total collection of taxes through the transaction of goods and services.”
“This rate (18 per cent) seems to be the right rate from immediate consumption perspective and also from the longer term tax-buoyancy perspective,” he told reporters here.
While GST was one of the biggest reforms in the last 25 years and one which would increase the wealth of the country, there were some other areas that held the potential for reforms, Mr. Forbes said.
This included education reforms and the ease of doing business.
In the ease of business, Mr. Forbes indicated that while things had started moving, there were concerns about “how little things have changed on the ground.
“There is a huge ongoing agenda on ease of business at the inter-departmental level, at the centre-state level and within the state,” he said.
Mr. Forbes, however, welcomed the Bankruptcy law, as India was among the nations where it was not only difficult to start a business but also difficult to close it.
