Amit Mitra, Finance Minister of West Bengal, has issued a statement saying that the Goods and Service Tax (GST) rates must be fixed in a way that the tax reform benefits the common people. He added that the GST should affect the common man positively by reducing the prices of various commodities. He was of the opinion that the state governments must be compensated by the centre after the passage of the bill.
The much-talked- about GST bill is currently in Rajya Sabha and is expected to pass. Followed by this, the bill has to be introduced in Lok Sabha and the state assemblies later for the implementation of the bill to begin. GST brings about uniform tax rates throughout the country and is supposed to bring down prices in the long term. Over 160 countries have passed reforms based on similar terms and though some of them have faced opposition; it hasn’t been for too long. The Central government has already announced compensation for any revenue loss by the state governments for a period of 5 years.
Earlier in July, Mitra had told the press the dual control over companies with an annual turnover of less than 1.5 crores will not be allowed. He said that if a small business is placed under dual control, they will have to see two different authorities; one that represents the Centre and the other that represents the state. He opined that the tax on the common people had to be significantly reduced.
The bill is expected to be passed in the Upper House soon. Once implemented, it will bring in a drastic tax reform throughout the country.