Top Story

e4m_logo.png

Home >> Media - Others >> Article

Additional tax on supply of goods could be harmful to 'Make in India' programme: CEA Arvind Subramanian

28-May-2015
Font Size   16
Additional tax on supply of goods could be harmful to 'Make in India' programme: CEA Arvind Subramanian

Chief Economic Advisor (CEA) Arvind Subramanian has warned that allowing manufacturing states to levy one per cent additional tax on supply of goods could be harmful to the ‘Make in India’ programme.

Subramanian was speaking at a press briefing in New Delhi on Tuesday. His comments came after the government proposed additional tax as a sop to states with manufacturing interests as it looks to win over states to facilitate passage of the GST Bill, which is expected to be implemented early next year.

Many states have been against GST with concerns that it will lead to loss of revenue despite the government stating that it will reimburse states for a period of five years.

Subramanian said that the additional tax would be detrimental to interstate movement of goods; something the GST is expected to facilitate, and would lead to increase in imports, which the BJP government wants to reduce to make India more self reliant.

He also spoke in support of rate cuts apart from keeping the GST simple.

“Think about a product going to Gujarat from Tamil Nadu crossing four states, the product will embody additional tax of 4-5 per cent. That might make it easier to import to Tamil Nadu from Bangkok or wherever. The period that we have gained to re-examine GST, some of these issues need to be looked at again,” a business daily reported Subramanian as saying.

Meanwhile, in a separate speech, Finance Minister Arun Jaitley has been reported to have stated that GST would be implemented as early as January 2016.
 

Tags GST Arvind Subramanian

Sidharth Gupta, Co-founder, Treebo talks about their outdoor campaign ‘Perfect stay or don’t pay’, what prompted this bold advertising move, its targeting, and the metrics that the brand utilizes to measure the efficacy of such a campaign

Vijay Mansukhani, speaks to exchange4media about the resurgence of Onida, the scope of growth of consumer electronics market in India and the reasons why Indian consumer electronics brands don’t compete on a global scale

Projjol Banerjea opens up about hiring Anne Macdonald and GroupM's Rob Norman, and the brand's new identity

Meera Iyer tells exchange4media that in FY 2016/17, bigbasket clocked a revenue of Rs 1,400 crore. The online supermarket currently stands at 70,000 orders a day, with operations in 25 cities.

The announcement regarding this was made on Twitter by Sukumar Ranganathan, Editor-in-Chief, Hindustan Times, and Shekhar Gupta, Founder, The Print

The website promises to bring fast, reliable, insight-rich analysis in times when the readers are flooded with ‘breaking news’, and great conversations among an elite community of opinion leaders

The network has based its claim on Broadcast Audience Research Council (BARC) all India data (U+R) from April 2017 to March 2017 (full year average)