Policymakers want GST rate pegged at 16%

Policymakers in some quarters of the government are of the view that a goods and services tax rate of around 16% would make the reform more acceptable and also ensure it does not add to inflationary pressures. The new fiscal framework could provide the government wiggle room so that if revenues take a hit because of the low tax rate, this space could be utilized till the biggest tax reform since Independence starts yielding gains. Read More...