At the same time, the IMF also expressed concerns over the implementation of the GST. “The GST should have minimal exemptions, uniform cross-state rates, and as few tax rate tiers as possible,” it said. Rationalisation of the structure of direct taxes toward a lower corporate income tax rate with smaller and streamlined deductions and exemptions should continue, it said. According to the IMF report, Indian authorities were confident that the outstanding issues related to GST implementation could be settled promptly. Tax reform priorities going forward include continuing the phased reduction of the corporate income tax rate from 30-25% over four years, coupled with a simultaneous reduction in tax deductions,” it said.

Source: Mint February 22, 2017 15:22 UTC