GST likely to have 3-slab rate in future: Bibek Debroy

As per him, the reform, although not perfect, should be rolled out and "it (GST) could be tweaked as we go along".

There is likelihood of four-slab GST rate structure to be reduced to three, said the Prime Minister's Economic Advisory Council (PMEAC) chairman Bibek Debroy.
 
He said while launching a book "GST: Explained for Common Man", written by former Central Board of and Excise and Customs (CBEC) chairman Sumit Dutt Majumder.
 
He observed that only very few countries that have implemented GST follow the principle of "dual GST" (Goods and Services Tax).
 
"Only very few..two or three, including India, Canada and perhaps Australia have dual GST, while the rest have a single, unitary tax," Debroy said. 
 
He was of the opinion that a multiple tax structure makes GST implementation an "extremely difficult" process.
 
As per him, the reform, although not perfect, should be rolled out and "it (GST) could be tweaked as we go along".
 
He pointed out that countries had taken as long as 10 years for their GST systems to stabilise.
 
"Going ahead, we in India will probably have three rates, instead of the current four," Debroy said.
 
In August, Sanjeev Sanyal, Principal Economic Adviser to the Finance Ministry, too, had revealed about the possibility of three GST slabs. As per him, the rates could be a low of 5 per cent, a central 15 per cent (merging the 12 per cent and 18 per cent slabs that exist now) and a top rate of 25 per cent.
 
Source: IANS, ET, media reports

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