Budget 2012: GST introduction a welcome move, says Dr. Tainwala, Planet Retail Holdings

NEW DELHI: With the Finance Minister Pranab Mukherjee announced the phased introduction of Goods and Services Tax ( GST) in his Budget 2012 speech, Dr. Tainwala, CEO, Planet Retail Holdings is of the opinion that it will streamline various taxes.



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"I am pleased to see that the Finance Minister has announced a phased introduction from August 2012 of Goods and Services Tax – GST in this Union Budget. It will bring almost all transactions under a single tax net. We await the implementation of GST from August of this year, as it should bring about a reduction in costs in most retail products," he said.

He feels that the increase in service tax from 10% to 12% will cause an increase in tax on rentals amongst other costs related to the retail sector. "A customer can expect to pay slightly more on everything from fashionable apparel to luggage to their electricity bill or even a refrigerator," he said.

"The Finance Minister’s statement about the active efforts on for the introduction of 51 per cent Foreign Direct Investment (FDI) in multi-brand retail is a welcome sign for the Indian retail sector as well as for the consumer who seeks more quality and choice in the marketplace," he adds.