A much awaited tax reform agenda, Goods and Services Tax (GST) will be roll-out soon as the many political parties, politician and other high profile people are backing the Bill. In addition, other politicians also believe that this new taxation system will be good for the Indian economy. Yesterday, the governor of the Reserve Bank of India, Mr. Raghuram Govind Rajan also said that the GST will create a common market for India and it will unify our country.
Read More About GST: Concept & Impact of GST Bill
Mr. Rajan said while addressing students of Presidency University, Kolkata, “Broadly speaking, there are two major advantages that GST will bring. Firstly GST could increase the tax base because it will bring more people under the tax net. Secondly, GST will reduce the barriers between states. It will make the country a common market place.”
Interestingly, the Bengal government is already backing the India’s vital taxation regime, GST Bill. RBI governor further told that a new system has been ready by the all banks to stave off over borrowings by big borrowers. Adding further he said, “those who said that the banks have no capital requirements are not sensible.”
Mr. Rajan also said the foreign share in government debt on 3%-3.2% which is “very responsible”. “It is easy to be tempted by easy money from outside and then get into problems later. There is a need for the golden mean,” RBI governor Rajan told.
It was not a good plan of paring interest rate to rock bottom level. He further added their words in his speech, “Better to have growth in real activity rather than a financial market boom due to distortion in prices.”
