GST 'most complex', needs massive fixing: Punjab Finance Minister
The way India designed its GST, I would actually give it 2 out of 10, says Manpreet Singh Badal.
Hyderabad: The current Goods and Services Tax model implemented by the NDA government was the 'most complex' in the world and has to be further simplified, Punjab Finance Minister Manpreet Singh Badal has said.
Manpreet said though he was not against the GST, it was "poorly designed" and needed massive fixing.
"There are 161 countries where GST has become law. But the way India designed its GST, I would actually give it 2 out of 10. I am part of the GST Council and ever since the rates were discussed, my own feeling is the model which India is following is actually the most complex in the world," Manpreet told PTI here Wednesday.
According to him, GST has actually been 'messed up.' He said the centre had claimed that GDP would go up by two percentage points once GST was implemented, compliance would become very simple and tax revenues would go up.
However the exact opposite had happened. GST compliance was hugely complex and less taxes were being collected when compared to the pre-GST period, he charged. "Similarly, growth has also not picked up. Obviously there is something wrong," he said. GST, which brought a one-tax regime in the country, was rolled out last year.
Manpreet further said if one looked at balance sheets of companies listed on the stock market--the big industries gained 10 per cent, but the medium industry was down 30 per cent and the small industries, down by 300 per cent. "It's a bloodbath as far as small and medium enterprise is concerned.We are concerned about that".
"As a Finance Minister I want GST to succeed.I hope we can fix it, but probably you will have to wait for the next government. Because this (NDA) government has now gone into an election mode and they will not try to fix it".
Asked about slab rates in GST, Manpreet suggested going in for two slabs. "The rates have to come down from four to five slabs and a very high rate of taxation". He opined that it could be fixed at around 15 per cent and added that one should also listen to the stakeholders and simplify the GST law, which was very complex.