The Chief Economic Advisor Arvind Subramanian talked about Goods and Services Tax (GST) when he was addressing a session at the Indian Institute of Management in Ahmadabad yesterday. Subramanian disclosed that the internal trade improved significantly and it’s been the advantage in the nation’s development in the wake of GST.
While addressing the session at the Indian Institute of Management in Ahmadabad yesterday, CEA Subramanian also revealed by the survey that was conducted in the various regions of the India on urban density, trade statistics, tax collection and the need for the universal base income. The Chief Economic Advisor Arvind Subramanian talked about the Indian trade by saying “In the face of Octroi and various other tax barriers across states, the movement of goods in India is doing healthy. The trade is 56% in India itself. It clearly shows that the trade barriers did not affect the statistics much.”
The Chief Economic Advisor added that according to the statistics, India has successfully managed to overtake China. Though, Arvind Subramanian highlighted on the value of tax collection and said that the State Governments must enforce stricter penalties on postponing the tax payments. “According to the recent Survey, only 5 to 15 percent of the total tax is collected in the Bengaluru and Jaipur. The States have to be less lenient with regards to tax subjects,” added Subramanian.
“As of now, one of the biggest India’s concerns is growing difference among states. Worldwide, the statistics from the last 25 to 30 years showed that even the poorest countries are now grabbing up with the developed countries and as a result diversifying the standard of living. Though, the division of growth is still prevalent in the states.” stated Chief Economic Advisor.
Emphasizing on the suggestion to implement a minimum basic salary of Indians, CEA Subramanian added that the implications are being observed and will be discussed when a consensus is made. “The thought of universal income has received a lot of attention, both nationwide and worldwide,” added Subramanian.