Nitin Gadkari asks industry not to seek tax cuts

Road transport and highways minister Nitin Gadkari on Monday asked the industry not to perennially demand a reduction in taxes as the government needs funds to implement welfare schemes for the poor.

Speaking at the seventh International Conference on Soaps Detergents and Cosmetics, he also reiterated that the logistics cost in India will come down to 9% within two years, making Indian products more competitive.

"Do not ask for reducing the goods and services tax (GST). It is a continuous process which is going on. If we reduce the tax, you will ask for more, because this is human psychology," Gadkari said. "We want to reduce the taxation, but without taxation also, the government cannot run a welfare state."


He said it is the government's vision to take the tax from the rich people and give benefits to the poor. "So the government has also got its own limits," he said.

India's logistics cost is 14-16% at present, according to Gadkari. The logistics cost in China is 8% and in the US and European countries, it is 12%, the minister said.

He said India Inc needs to reduce the cost of production without compromising the quality.