“Service tax on major public work is unscientific. The Finance Minister also found fault with the Centre for bringing cigarettes and beedis under same tax slab of 18%. The State’s revenue through service tax was currently pegged at around ₹7,000 crore and that from the Central excise was around ₹ 5,800 crore. “The anticipated gap in the tax revenues is likely to be bridged by the rise in service tax collection which is likely to be around 20%,” he said. He, however, refused to elaborate on the likely net impact on the State’s tax revenues.

Source: The Hindu June 30, 2017 03:56 UTC