New Delhi, June 29: The government may mop up about 15 billion dollars (over Rs 72,000 crore) annually with the implementation of Goods and Services Tax (GST)- the new tax regime doing away with the most indirect taxes.
“As I have mentioned elsewhere, it has been estimated that the GST implementation increased Canadian GDP by 1.4 per cent. In India, we can expect a similar kind of positive impact. This means gains of about 15 billion dollars annually,” Thirteenth Finance Commission Chairman Vijay Kelkar said at a seminar on GST organised by Assocham here.
A study on the impact of GST on foreign trade indicates that the rate of growth of exports will be significantly higher than that for imports. GST will also promote employment, Kelkar said.
The GST regime, he said, will lower the tax rate by broadening the tax base and mimimize exemptions.
–PTI