Lok Sabha passes Bill to extend Goods and Service tax to J&K
New Delhi, Aug 02 : Lok Sabha on Wednesday passed a Bill to extend the Goods and Services Tax (GST) to the state of Jammu and Kashmir with Finance Minister Arun Jaitley separately assuring that there was scope of clubbing of tax rates in the future.
Jaitley while defending the GST said there cannot be uniform tax rate on all items as it would ironically tax the ‘hawai chappal’ and a BMW car at same rates.
The staggered tax slabs cushion the poor and people from lower economic strata against higher taxes imposed on items used by rich.GST has lowered taxes from standard 36 per cent to either 28 per cent to 18 per cent, he said.
The GST should be allowed to settle down, said Jaitley while adding the manufacturers should pass on reduction in tax to consumers.The Congress has opposed the extension of GST to J&K.
Speaking in Lok Sabha on the Bill to extend the GST to J&K, Congress MP Shashi Tharoor said the current format of GST would be disastrous and could cripple the economy.
Tharoor had opened the debate on behalf of his party. Tharoor said the GST was only adding to the jobs of chartered accountants.
Trinamool Congress MP Kalyan Banerjee read out a long list of items which have become costly after GST was introduced and suggested a reduction in rates of taxation on certain items.