Industry for efficient goods and services tax system
Confederation of Indian Industry has in a report urged the finance ministry for an efficient goods and services tax (GST) regime.business Updated: Oct 28, 2007 15:11 IST
A leading Indian industry organisation has in a report urged the finance ministry for an efficient goods and services tax (GST) regime that would eliminate distortions and lower taxpayers' burden.
A simple and liberal tax administration would enhance public finances and enable better revenue collection, says the report by the Confederation of Indian Industry (CII).
Suggesting a roadmap for a better GST model, the CII has recommended that central GST should include central excise, service tax and education cess. It said state GST should include a combination of all taxes presently levied by the states and octroi levied by municipalities.
It suggested that tax on the sale of property be levied on value addition under state GST and not on the total amount, as applicable presently.
Municipalities should get financial support from the states to meet their expenses and should be allowed to impose only property tax, the CII said, adding that the responsibility to collect taxes should be divided in a strategic manner between the centre and the states.
The chamber also urged the central government to examine and implement the recommended model soon.