Economist recommends single, uniform GST rate applied to all domestic consumption

Vito Tanzi, erstwhile Fiscal Affairs Director with the International Monetary Fund (IMF), has suggested that India regenerate the existent multi-rate Goods and Services Tax (GST) slabs with a azygous single complaint connected each home consumption, and redistribute the full gross arsenic to each national arsenic a per capita integer transportation via Aadhaar-linked accounts.

Prof. Tanzi was virtually addressing an planetary league connected Socio-Economic Impacts of GST organised by the Centre for Development Studies (CDS) present connected Saturday. According to a connection issued by CDS, Prof. Tanzi invoked Leonardo da Vinci’s maxim -– simplicity is the eventual signifier of sophistication -- arsenic the organising rule of a dependable taxation policy.

Prof. Tanzi said alternatively than embedding equity into a analyzable complaint structure, India could execute redistribution much efficaciously and transparently connected the spending broadside -- generating higher, unchangeable gross done a simplified GST and returning it straight to citizens.

The two-day conference, which concludes connected Sunday, brings unneurotic academics, policymakers, scholars and practitioners to analyse the impacts of GST betterment crossed depletion patterns, fiscal federalism, State finances and broader socio-economic outcomes.