New Delhi, Nov 27, : The PHD Chamber of Commerce and Industry urged the GST Council to rationalize rates at its upcoming meeting. According to the industry body, current rates are not in sync with demand generation and employment generation in the country.
Pradeep Multani, President of PHD Chamber of Commerce and Industry, stated that “we urge the government to rationalise GST rates into three major slabs of 5%, 10% and 15% per cent along with some ‘Sin Goods’ in the slab of 28%.”
Accordingly, the industry body recommended that items in the category of 12 percent rate be reduced to 10% and items in the 18% rate category be reduced to 15%
“The items in the 0 and 5% categories should be left as is.”
“There shouldn’t be more than 25 items within the category of Sin Goods’, which is rated at 28%.”
Multani believes that rationalizing the tax slabs will create enormous demand in the economy, reduce inflationary pressures, increase the sentiments of producers and create employment opportunities to support the country’s growing workforce.
Multani stated that lower taxes are always a good way to increase the tax base and tax-to-GDP ratio.
“A level playing field for industries is crucial to the promotion of Aease of doing Business in the country.”
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