The Confederation of Indian Industry (CII) on Tuesday advocated for keeping the rate of Goods and Services Tax (GST) “around 18 per cent”.
Interaction with mediapersons in Kolkata, CII president Dr Naushad Forbes said, “A rate of 18 per cent should be fine. The intention of GST is not to increase or decrease the revenue for the state. A higher rate would damage consumption…demand will be directly hit.”
Lauding the implementation of GST, he said it was the biggest tax reform which would push the GDP growth by 1.5 to 2 per cent. “It would lead to a revenue buoyancy for consuming state like West Bengal owing to a widened tax net,” Forbes said, adding that the projected GDP growth rate would be around the 8 per cent mark in 2016-17.
“With inflation, fiscal deficit, current account deficit under control, macro fundamentals strong, global investors’ sentiments positive, FDI inflows high, interest rates coming down, there is a strong hope for betterment,” he said and added that the agriculture sector was poised to grow at 3 per cent.
Moreover, industry and services were expected to grow at 8.2 per cent and 9.8 per cent, respectively. Talking about the risk factors, however, Forbes said that the revival of external demand was uncertain and exports were still under stress while flow of domestic investment is weak.