You are here: Home » Economy & Policy » Q&A
Business Standard

GST standard rate should be 26%: Thomas Isaac

Interview with Finance Minister, Kerala

Dilasha Seth 

GST standard rate should be 26%: Thomas Isaac

The peak rate should be set at more than 30 per cent and the lower rate be reduced to four per cent, said Kerala's Finance Minister Thomas Isaac after the Council meeting on Tuesday. He told Dilasha Seth that the states were satisfied with the decision arrived to compensate states. Edited excerpts:

What is your take on the Centre's four-tier rate structure?



The Centre has proposed a four-rate structure with a top rate of 26 per cent, standard rates of 18 per cent and 12 per cent and a low rate of six per cent. I would like to have the 26 per cent raised to 30 per cent-plus, which would enable us to bring down tax on necessities from six per cent to four per cent.

Will you back the standard rate of 18 per cent?

I would say that the standard rate should be 26 per cent, while the top rate should be increased to over 30 per cent. Common man's items can either be exempt or levied with lower tax rates. Hopefully, a decision on rates will be finalised in tomorrow (Wednesday)'s meeting.

What was the big outcome of today's meeting?
The major issue that's been resolved today is the compensation for states. Basically at what rate will it be taxed. A consensus between the Centre and the states was arrived at. Base year for calculating the revenue of a state would be 2015-16 with growth rate of 14 per cent to be taken to calculate the likely revenue for first five years. Almost all states demanded that.

RECOMMENDED FOR YOU

GST standard rate should be 26%: Thomas Isaac

Interview with Finance Minister, Kerala

Interview with Finance Minister, Kerala The peak rate should be set at more than 30 per cent and the lower rate be reduced to four per cent, said Kerala's Finance Minister Thomas Isaac after the Council meeting on Tuesday. He told Dilasha Seth that the states were satisfied with the decision arrived to compensate states. Edited excerpts:

What is your take on the Centre's four-tier rate structure?

The Centre has proposed a four-rate structure with a top rate of 26 per cent, standard rates of 18 per cent and 12 per cent and a low rate of six per cent. I would like to have the 26 per cent raised to 30 per cent-plus, which would enable us to bring down tax on necessities from six per cent to four per cent.

Will you back the standard rate of 18 per cent?

I would say that the standard rate should be 26 per cent, while the top rate should be increased to over 30 per cent. Common man's items can either be exempt or levied with lower tax rates. Hopefully, a decision on rates will be finalised in tomorrow (Wednesday)'s meeting.

What was the big outcome of today's meeting?
The major issue that's been resolved today is the compensation for states. Basically at what rate will it be taxed. A consensus between the Centre and the states was arrived at. Base year for calculating the revenue of a state would be 2015-16 with growth rate of 14 per cent to be taken to calculate the likely revenue for first five years. Almost all states demanded that.
image
Business Standard
177 22

GST standard rate should be 26%: Thomas Isaac

Interview with Finance Minister, Kerala

The peak rate should be set at more than 30 per cent and the lower rate be reduced to four per cent, said Kerala's Finance Minister Thomas Isaac after the Council meeting on Tuesday. He told Dilasha Seth that the states were satisfied with the decision arrived to compensate states. Edited excerpts:

What is your take on the Centre's four-tier rate structure?

The Centre has proposed a four-rate structure with a top rate of 26 per cent, standard rates of 18 per cent and 12 per cent and a low rate of six per cent. I would like to have the 26 per cent raised to 30 per cent-plus, which would enable us to bring down tax on necessities from six per cent to four per cent.

Will you back the standard rate of 18 per cent?

I would say that the standard rate should be 26 per cent, while the top rate should be increased to over 30 per cent. Common man's items can either be exempt or levied with lower tax rates. Hopefully, a decision on rates will be finalised in tomorrow (Wednesday)'s meeting.

What was the big outcome of today's meeting?
The major issue that's been resolved today is the compensation for states. Basically at what rate will it be taxed. A consensus between the Centre and the states was arrived at. Base year for calculating the revenue of a state would be 2015-16 with growth rate of 14 per cent to be taken to calculate the likely revenue for first five years. Almost all states demanded that.

image
Business Standard
177 22

Upgrade To Premium Services

Welcome User

Business Standard is happy to inform you of the launch of "Business Standard Premium Services"

As a premium subscriber you get an across device unfettered access to a range of services which include:

  • Access Exclusive content - articles, features & opinion pieces
  • Weekly Industry/Genre specific newsletters - Choose multiple industries/genres
  • Access to 17 plus years of content archives
  • Set Stock price alerts for your portfolio and watch list and get them delivered to your e-mail box
  • End of day news alerts on 5 companies (via email)
  • NEW: Get seamless access to WSJ.com at a great price. No additional sign-up required.
 

Premium Services

In Partnership with

 

Dear Guest,

 

Welcome to the premium services of Business Standard brought to you courtesy FIS.
Kindly visit the Manage my subscription page to discover the benefits of this programme.

Enjoy Reading!
Team Business Standard