The former union finance minister P. Chidambaram was seen directing the government to cut the indirect taxes as an agenda to increase the demands and also called for a rationalization over its advice on the newly affected goods and service tax. In this context, he said that “GST is not around the corner. Not coming anywhere before October 1.”
He was very dismissive about it and counted the issue on the part of current union minister Arun Jaitley to not to haul the indirect taxes in the union budget as of now. He mentioned that “I would have cut indirect taxes. That’s the best way to boost aggregate demands. Nine out of ten economists will tell you to do that.”
Along with this, he talked about various topics, “In August last year, Goods and Services Tax (GST) bill, a proposed system of indirect taxation, was passed which will merge most of the existing taxes into a single system of taxation..” But in addition told that “The budget was presented on February 1. The indirect tax cut would come to force immediately.”
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He laid the benefits of cutting the indirect taxes, and told that “He had eight full months to cut indirect taxes and see the effect of that on the economy, It would have boosted sales.” “It would have allowed or encouraged people to make new investments.” There is so much slack in existing capacity, why would anyone invest in creating new capacity?
