Revenue Secretary Hasmukh Adhia has expressed his hopes that the ‘game-changing’ goods and services tax (GST) regime will help lower inflation by 1-2 percent by the end of financial year 2018, and it will also create buoyancy in the economy through better compliance and ease of doing business.
Revenue Secretary further stated that the primary objective of the government is to keep the inflation low and added that the government has tried to keep items for common man use under the lower tax bracket. Under the GST, he noted that rates on items have been fixed in such a manner that it does not affect any section of the society adversely. He also predicted that the new tax regime will give a push to country’s exports and Make In India initiative in the long term.
Talking about tax collection, Adhia said that there will be some losses in tax collection in short term, but in the long term the revenue collection will go up as tax evasion is not possible under the GST regime. He also said that the government is organising master classes on GST to educate the people about various aspects of the new tax regime.