NAGPUR: Union Minister of Surface Transport Nitin Gadkari on Sunday conceded that the GST (Goods and Service Tax) rollout could witness initial hiccups, but said the government was pragmatic and open to suggestions.
Speaking on ‘GST and Indian Economy’ in his constituency, Nagpur, Mr. Gadkari hailed the GST as “the biggest economic reform since Independence”. “We want to accelerate our country’s growth and fulfil the Prime Minister’s dream of double-digit growth. The GST will end red-tapism and corruption,” he said.
He said “licence and inspector raj” troubled many people. “With GST, the concept of ‘one country, one tax’ has become a reality, which will give a big boost to the Indian economy. But less than 1% of the population pays tax. There are many misconceptions (about GST). Some doubts are natural in the initial phase, which is why the Prime Minister has asked us to go to the people and explain the tax to them. If you don’t communicate properly about the good work that you are doing, it may create problems.”
On the ease of doing business, Mr.Gadkari said a high number of laws increases corruption. “Around 164 countries have GST in place. This tax reform is going to be highly beneficial to Nagpur, as it is going to be a logistics hub. The tax revenue of Maharashtra will also increase by 25% … There will be attempts to look for loopholes, but it will be difficult as the entire system will be computerised … There are ‘experts’ who will advise about loopholes, but remember even Charted Accountants have gone to jail. Better to accept this simple system, which has done away with 17 taxes and 22 cess. Is this not a relief?" he asked.