The government hopes to increase the contribution of service tax to GDP which is currently as low as 1.1 per cent, a top official has said.
Contribution of the service sector to GDP is 56 per cent but the share of service tax in the GDP is just 1.1 per cent, Chairman of the Central Board of Excise and Customs (CBEC), PC Jha, said in Bangalore last night. “So, it’s quite low. This has to go up. Service sector is one from which the government expects to get more revenue”, he said.
Jha said the service tax revenue was growing at a rapid pace. In 1994, service tax was imposed on three services and the rate of duty then was 5 per cent, with service tax revenue at Rs 410 crore from 3,900 service tax-payers.
Now, 106 services come under tax and the rate has gone up to 12.36 per cent.
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →
Smart Quarterly
₹900
3 Months
₹300/Month
Smart Essential
₹2,700
1 Year
₹225/Month
Super Saver
₹3,900
2 Years
₹162/Month
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app