BUSINESS

GST will reduce tax burden by 25-30%: FinMin

By BS Reporter
December 24, 2009 10:37 IST

While the finance ministry on Wednesday admitted to Rs 20,000-22,000-crore (Rs 200-220 billion) shortfall in the indirect tax collections during the current year, it went on to assure the industry that the tax burden on people would come down by 25-30 per cent with the introduction of the proposed goods and services tax.

The new tax is expected to subsume various indirect taxes, including excise and value-added tax.

The reduction in tax burden through GST, however, might not mean a cut in government revenue since the rates being discussed for GST are designed to be revenue neutral even as the new tax regime is expected to widen the tax base.

BS Reporter in New Delhi
Source:

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