Former Finance Minister Arun Jaitley Monday said the 12 and 18% tax slabs in goods and services tax (GST) could be merged going forward as revenues increase, thereby effectively making it a two-tier tax. As revenue increases further, it will give an opportunity to policy makers to possibly merge the 12% and 18 or cent slab into one rate, thus, effectively making the GST a two rate tax," he said. The multiple slab system not only checked inflation, it also ensured that the Aam Aadmi products are not exorbitantly taxed. GST, which subsumed 17 local taxes, was rolled out on July 1, 2017. The GST currently has four slabs -- 5, 12, 18 and 28%.

Source: dna July 01, 2019 09:31 UTC