GST may have single standard rate between 12-18 percent: Jaitley
New Delhi, Dec 24 (IBNS): Union Finance Minister Arun Jaitley on Monday said his government is working towards developing a single national sales tax rate.
He said the rate can be between 12 and 18 per cent.
"With the GST transformation completed, we are close to completing the first set of rate of rationalisation i.e. phasing out the 28% slab except in luxury and sin goods," Jaitley said in a Facebook post.
"A future road map could well be to work towards a single standard rate instead of two standard rates of 12% and 18%," he said.
" It could be a rate at some mid-point between the two. Obviously, this will take some reasonable time when the tax will rise significantly. The country should eventually have a GST which will have only slabs of zero, 5% and standard rate with luxury and sin goods as an exception," he said.
In a bid to appeal the middle class and businessmen and with an eye kept on the Lok Sabha polls next year, the Indian government on Saturday slashed Goods and Services Tax rates on several products.
The GST Council's 28th meeting was held here under the Chairmanship of Piyush Goyal , Union Minister for Railways , Coal , Finance & Corporate Affairs, where a decision was taken to lower the tax slab on products such as paints, leather goods, bamboo flooring, stoves, televisions and washing machines from the highest rate of 28 percent to 18 percent.
The government also announced an exemption of sanitary napkins, rakhi from the GST, an attempt made by Prime Minister Narendra Modi-led government before the 2019 general elections when it will seek its second term to power.
Sanitary napkins were earlier taxed at 12%.
The new tax rates will be applicable from July 27.
