Prime Minister Narendra Modi thanked all parties for passing Goods and Services Tax
New Delhi:
Prime Minister Narendra Modi today said the Goods and Services Tax, which will replace a raft of different central and state levies, will strengthen growth efforts and make the economy more predictable.
He credited all political parties for passing the constitutional amendment enabling the Goods and Services Tax and making India the world's biggest single market.
"The Goods and Services Tax bill which has been passed recently will further strengthen the way we are trying to accelerate growth and make the economy predictable," Mr Modi in his 3rd Independence Day address.
Parliament has passed the 122nd Constitutional Amendment Bill to enable changes in the centre's powers to levy taxes like excise, and the states' powers to collect retail sales taxes. The country's largest tax reform has taken more than a decade to be realized. According to a government report, the tax reform could add as much as 2 percentage points to the nation's growth rate, through improving ease of business and encouraging investments.
Prime Minister Modi also said that current economic reforms had garnered appreciation from the World Bank, International Monetary Fund and international credit rating agencies.
India's biggest tax reform in almost 25 years, the Goods and Services Tax is expected to replace more than a dozen central and state levies including central excuse, service and sales tax as well as the existing Value Added Tax regime. Under the new tax regime goods would be taxed at the point of consumption.
He credited all political parties for passing the constitutional amendment enabling the Goods and Services Tax and making India the world's biggest single market.
"The Goods and Services Tax bill which has been passed recently will further strengthen the way we are trying to accelerate growth and make the economy predictable," Mr Modi in his 3rd Independence Day address.
Parliament has passed the 122nd Constitutional Amendment Bill to enable changes in the centre's powers to levy taxes like excise, and the states' powers to collect retail sales taxes. The country's largest tax reform has taken more than a decade to be realized. According to a government report, the tax reform could add as much as 2 percentage points to the nation's growth rate, through improving ease of business and encouraging investments.
Prime Minister Modi also said that current economic reforms had garnered appreciation from the World Bank, International Monetary Fund and international credit rating agencies.
India's biggest tax reform in almost 25 years, the Goods and Services Tax is expected to replace more than a dozen central and state levies including central excuse, service and sales tax as well as the existing Value Added Tax regime. Under the new tax regime goods would be taxed at the point of consumption.
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