Tax experts say, Arun Jaitley, who had in his previous budget hiked service tax rate by 0.5% to 15%, may raise the levy by at least one percentage point to 16%. Photo: Hindustan TimesNew Delhi: Finance minister Arun Jaitley may hike service tax rate to 16-18% from the current 15% in the budget, due on Wednesday, as a precursor to the goods and services tax (GST) rollout. The tax slabs decided for the GST are 5, 12, 18 and 28% and taking service tax closer to one of the slabs is a logical move in the budget, tax experts said. A service tax rate closer to the GST rate will also help consumers avoid a greater price shock when the new national sales tax is rolled out. This will be the third time that Jaitley will raise service tax rate.

Source: Mint January 29, 2017 07:16 UTC