Indian Tax Payers Relieved as Tax to be Reduced by 25-30% after introduction of GST
The tax burden is all set to be reduced. The Government today announced that tax would come down by 25-30% from the next financial year.
P V Bhide, the Revenue Secretary said that the tax payers would be substantially relieved, as the burden of tax would be pulled down by around 25-30%, after GST comes in starting 1 April 2010. He also said that GST will enhance the competitive edge of both the manufacturing and services industries.
By replacing the excise duty and service tax at the central level, and value added tax at the state level, this new tax regime would also reduce the surcharges and local taxes being levied on goods and services.
Taxation rates on imports and domestic would remain same. Once domestic taxes such as CST, VAT and others are merged with GST, and State GST is employed as the uniform tax across the country, the disability that domestic products suffer with regards to imported goods would be effectively removed.
