New Delhi: Prominent industrialist Adi Godrej today allayed fears of price rise after the implementation of the Centre's flagship Goods and Services Tax, saying the tax slabs have been placed so reasonably, that the overall effect will be "extremely beneficial". Hailing GST as the biggest economic reform since the liberalisation of 1991, he said it would, in the long run, make India a "very fast growing economy".
The big thing about GST, Mr Godrej told NDTV in an exclusive interview, is that it can be "extremely beneficial if the rates are reasonable, as now they are". That will create "strong GDP growth, strong demand, and therefore stronger consumption will lead to stronger investment and therefore stronger benefit".
The concerns about GST, he added, are exaggerated by people "who don't understand the issue very well".
Price rise has been one of the key criticisms of the opposition and a recurring concern for a section of traders, who fear loss of business if the tax is passed onto the consumer.
From Congress to Trinamool Congress chief and Bengal Chief Minister Mamata Banerjee, most opposition parties have flagged the matter. The Congress had been opposed to the four-tier tax system, saying any tax above 18 per cent will hit consumer interests.
Today, Delhi deputy chief minister Manish Sisodia took a dig at the BJP, saying politicians do not need to celebrate GST launch, if the people were happy, they would celebrate. Indicating that was unlikely, he said, "for the first time since Independence" clothes, slippers and fans, tiles are being taxed at 28 per cent".
While drawing up the GST - dubbed as the biggest tax reform since Independence -- the government had taken the opposition and the state governments on board. Still, this is only a beginning, said top economist and Central think tank member Bibek Debroy. Most countries, he said, perfected similar tax regimes over a few years and in India too, the GST Council will make tweaks in the days to come.
The single tax system, which will replace a quagmire of nearly a dozen central and state taxes that hobble business and strike fear among foreign investors, is divided into four broad tax categories. The slabs are of 5, 12, 18 and 28 per cent, and various exceptions.
The big thing about GST, Mr Godrej told NDTV in an exclusive interview, is that it can be "extremely beneficial if the rates are reasonable, as now they are". That will create "strong GDP growth, strong demand, and therefore stronger consumption will lead to stronger investment and therefore stronger benefit".
Price rise has been one of the key criticisms of the opposition and a recurring concern for a section of traders, who fear loss of business if the tax is passed onto the consumer.
Advertisement
Today, Delhi deputy chief minister Manish Sisodia took a dig at the BJP, saying politicians do not need to celebrate GST launch, if the people were happy, they would celebrate. Indicating that was unlikely, he said, "for the first time since Independence" clothes, slippers and fans, tiles are being taxed at 28 per cent".
Advertisement
The single tax system, which will replace a quagmire of nearly a dozen central and state taxes that hobble business and strike fear among foreign investors, is divided into four broad tax categories. The slabs are of 5, 12, 18 and 28 per cent, and various exceptions.
COMMENTS
Advertisement
5 Facts About Adi And Nadir Godrej, Owners Of Godrej Industries After Split Godrej Family Announces Split After 127 Years: Who Gets What Headed For Family Split, Godrej Group Looks To Divide $4.1 Billion Empire: Report Video: Woman Tries To Jump Off Mumbai's Atal Setu, Saved By Driver, Cops Parents Gave Names Of Interns, Doctors To CBI In Kolkata Horror: Sources How Extreme Weather Is Leading To Rise In Child Marriages In Pakistan Joe Biden Exit To Kamala Harris Endorsement: Wildest Month Ahead Of US Polls Kolkata Rape-Murder Case Updates: Doctors Begin 24-Hour Nationwide Strike Doctors Begin 24-Hour Nationwide Strike Over Kolkata Rape-Murder: 10 Points Track Latest News Live on NDTV.com and get news updates from India and around the world.