Industry body FICCI today said there is a need to bring down rates under the proposed indirect tax regime to a uniform level of 12%.
"The proposed rates of 20%, 16% and 12% are good enough to begin with, but these would need to be gradually brought down to a uniform level of 12%," FICCI President Harsh Mariwala told reporters here. This comes ahead of the meeting with the FM, Pranab Mukherjee.
The Empowered Committee of State Finance Ministers is meeting tommorow to discuss ways to take forward the proposed tax system, which will subsume most of the existing indirect taxes. The finance ministers of the states will also hold a meeting with Mukherjee later in the day.
Mariwala also supported the need for a broad-based GST that encompasses all sectors of the economy within its ambit.
He said the proposed exclusion of certain sectors would be detrimental for the sectors consuming these goods as they form an integral part of India's industrial and commercial activities.
"The proposed exclusion of sectors such as petroleum, natural gas, real estate, alcohol and power generation... would result in significant adverse implications for the sectors which consume these goods, and thereby cause tax cascading and high costs in the economy", Mariwala said.
The industry chamber also called for all central taxes and state taxes to be subsumed under Central GST and State GST respectively.
We will come with the white paper soon, FICCI informed further.