Letters: GST - The rating game

This refers to the report "Which is the best GST rate?" (May 12). The authors have rightly mentioned that 27 per cent is the highest rate adopted in Hungary but we cannot compare our economy with others as they have different economic and political environments.

The speculation around the Goods and Services Tax (GST) rate can never be ended till the time GST comes into force. The National Institute of Public Finance and Policy has suggested a rate of 27 per cent for the revenue-neutral rate (RNR). RNR means the rate at which both the governments would be in a no-loss-no-profit situation from the current stage of revenue.

It is necessary to have an early introduction of GST rather than disputing the same. On the other side, to avoid losses to the states or the central government, it is proposed to have such a high rate in the GST regime. In my view, the general public shouldn't be burdened with such a huge amount of tax in the course of these political squabbles.

N K Gupta New Delhi

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