FM-Consumer tax come down and prices of other essential goods would dip after GST kicks in

Dated 16th October, 2015

Finance Minister Capt. Abhimanyu has said that after the implementation of Good and Services Tax (GST) in the country, consumer tax could be reduced up to 15 to 20 per cent.

Capt. Abhimanyu, who returned from his tour to Australia as a representative of a high-powered committee of state Finance Ministers constituted by the Government of India, was addressing a press conference here yesterday. He said with the implementation of GST, not only will consumer tax come down but prices of various other essential goods would also dip.

The minister said he also went to Singapore on his personal visit where he met government functionaries and industrialists. He said foreign institutional investors of Singapore had shown keen interest in investing in India.

Capt. Abhimanyu said the GST system was expected to be implemented in the country from April 1, 2016.

About the possibilities of revenue loss to states with the implementation of GST, the Finance Minister said the Central Government had made a provision in its Bill that in case a state suffered any loss after the implementation of GST, that state would be compensated by the Centre for five years.

He said the GST system had been successfully running in Australia for the last 15 years and it had registered an increase of 1.5 per cent in the GDP.