Tax rates on raw materials should not be more than the finished product, CAIT General Secretary told Financial Express Online.
Traders’ body CAIT has requested the newly appointed Finance Minister Nirmala Sitharaman to review the tax structure for all the items and bring about a reduction in the same, CAIT General Secretary Praveen Khandelwal told Financial Express Online. It has also asked for a lowering down of GST slab for aluminium products rate to 12% and the auto parts to 5% as auto parts are considered raw material, he added. CAIT suggested a reduction in the tax rate for items like hardware, mobile covers, ice cream, health drinks, paints, marble, used vehicles, and two-wheelers as well.
The erstwhile Defence Minister Nirmala Sitharaman has also released the white paper for GST reforms. The traders’ body has dealt with issues pertaining to GST, MUDRA, and digital payments etc in the Thursday meeting with the finance minister. Speaking to Financial Express Online, the CAIT (Confederation of All India Traders) General Secretary also said that the body wants a reduction in the GST slabs for all the items as many items are overlapping with others. Further, “tax rates on raw materials should not be more than the finished product,” he said. The traders’ body has met the finance minister for the first time since she took charge of the finance ministry.
“She [Nirmala Sitharaman] has said she will have a look at all our issues and whenever the need arises, she will consult us regarding the same,” Praveen Khandelwal said. In the meeting, the traders’ body brought along the proposal of waiving off charges on digital payments as well. “Only then will consumers and traders’ will better use digital payments,” Praveen Khandelwal said.
Previously, the traders’ body had said that it wants the government to subsidize digital payments for the traders’ so that they can promote cashless economy. Stating that CAIT’s views are in line with the government dream of cashless economy, Praveen Khandelwal had earlier said that the government should incentivize traders’ for the same.