Delhi to seek lowering of tax slabs under GST

NEW DELHI: Before the goods and services tax is rolled out in July, the Aam Aadmi Party government in Delhi plans to make a demand for lowering of tax slabs to protect the interests of the capital’s traders and industrialists.

Deputy chief minister Manish Sisodia, who holds the finance portfolio, made an announcement to this effect on Tuesday.

Sisodia, a member of the GST Council, said that after a series of meetings with the capital’s traders, he will forward a demand for lowering of tax slabs in the council’s meeting on June 3.

“I have met over 32 traders associations today and it seems that increase in taxes through GST will have an adverse impact on the capital’s trade and growth,” Sisodia said, clarifying that while he supported the GST as a tax measure he believed that only lower taxes could ensure compliance.

Citing examples of an increase in taxes for “basic” commodities such as spectacles, bathroom hardware and even dry fruits, Sisodia said that there is still a lot of confusion at the ground level and many basic commodities are treated on a par with luxury items.

The deputy chief minister suggested lowering taxes on items such as cement, oil and watches. “GST could completely fail if the process of implementing the tax measure is not corrected. Tax slabs need to be reduced as that could affect our small-scale industries and trades,” he said.

“The Centre is pushing its ‘Make in India’ policy and transparency in taxes, but if the taxes are so high, all our industries will have to either shut down or the owners forced to evade taxes,” the deputy chief minister said.