Kerala's LDF government to oppose capping of peak GST rate at 18%

KOCHI: The CPI(M) led Left Democratic Government ( LDF) government in Kerala would oppose the move to cap the peak GST rate at 18 %.

The Kerala Finance Minister Dr T M Thomas Issac said that fixing the peak rate at 18 % would affect the state’s efforts to raise resources. The Finance Minister has opposed the Congress demand to cap the rate at 18%.

It has been pointed out that the average tax rate in Kerala would work out close to 26 %, which include Cenvat and state VAT. Therefore the average rate of 18 % would mean that the state would not be able to maintain its existing revenue levels.

The state government is for fixing the rate at around 22 %. However, the CPI(M) central leadership has reportedly taken the stand that a high rate would be a burden for the common man. The CPM central leadership also said that the rates can be discussed later.