Amid intense speculation over the rate of Goods and Services Tax (GST), Finance Minister Arun Jaitley on Saturday said moderate taxes and high evasions cannot coexist.
“If all taxpayers pay their taxes, it will help bring in tax rates further low. The more the evasions and exemptions, the higher will be the tax rate. So, moderate tax rates and evasions cannot co-exist,” Jaitley told a meeting of BJP workers here.
The minister was replying to a demand made by Ashish Shelar, Mumbai BJP unit president, to bring the proposed GST rate at 17 per cent.
Explaining the rationale further, the minister said when more people evade taxes, it brings in an aberration in tax structures.
The proposed uniform taxation regime, GST will integrate the country into one single market by ensuring a free flow of goods and services across the country, Jaitley said, adding that in order to enable this, we should have a uniform tax rate throughout the country.
The GST will ensure that taxation rates are moderate, which in turn will bring down the cost of doing business, thereby bringing down the cost for end consumers.
Sourced from PTI, Featured image courtesy: www.ibtimes.co.in
