Outgoing Chief Economic Advisor (CEA) Arvind Subramanian echoed Congress vice-president Rahul Gandhi’s demand of removing the highest tax slab of 28 per cent in Goods and Services Tax (GST), on Wednesday during Idea Exchange Event by The Indian Express.
Subramanian stated that a uniform rate of cess should be applied for simplification of GST and removing the 28 per cent slab has to be the very first step.
“I think the 28 per cent rate has to go. The cesses may have to remain, but there should be just one rate on cesses… Today, we have GST rates of zero, 3 per cent (for gold), 5 per cent, 12 per cent, 18 per cent and 28 per cent. We need to rationalise but I think at the first instance the 28 per cent should go,” he said.
In November last year, Gandhi had also made a similar demand while addressing a rally in Gandhinagar, Gujarat. He had said that his party will pressurise the Bharatiya Janata Party (BJP) government to remove the 28 per cent tax slab from GST and implement one slab of 18 per cent.
“We are not happy. We want the ‘Gabbar Singh Tax’ to be abolished and people get one tax slab of GST. We want only one 18 percent tax slab. If BJP does not do it we will do it in 2019,” Gandhi said.
Subramanian, who announced his departure from Finance Ministry citing “personal reasons” last week, had submitted a report earlier suggesting an 18 per cent rate and 40 per cent rate for GST.