GST will send the message that 'India is open for business'
DELIVERING a lecture in Chennai yesterday, Planning Commission Deputy Chairman said that implementation of the Goods and Services Tax (GST) will be the best signal to tell investors globally "India is open for business."
He also said,
An efficient tax regime is key to sustaining government revenue for social and physical infrastructure development and a sustainable fiscal policy.
Bringing in GST is the most important tax reform that is needed along with bringing down customs duty in a globalised economic environment.
Political parties are coming together on implementing GST, but some gaps remain.
It is important that the tax treatment is globally accepted as reasonable and there is consistency in tax policy to instil investor confidence.
With multinational companies setting up subsidiaries here and Indian companies going abroad, tax administration and calculations should be aligned globally.
Rules on transfer of funds between parent companies and subsidiaries should be clear.
Globally, countries are moving away from customs duties because the essence of globalisation is that you don't impose too many taxes on trade and focussing on increasing revenue from domestic taxes.