'Compliance rate may go down due to higher tax slabs in GST'

Delhi Deputy Chief Minister Manish Sisodia today expressed apprehension that the compliance rate will be reduced due to higher tax slabs under the Goods and Services Tax (GST).
Sisodia said the GST cannot be termed as one of the "most influential tax reforms" in the country as "big decisions" were not taken by the Centre while implementing it.
The central government should not have introduced 18 to 28 per cent tax slabs in the GST, he said while addressing an interactive session on 'Ease of Doing Business and GST Gearing up for Change in Delhi NCR' under the aegis of PHD Chamber of Commerce and Industry.

Sisodia, who also holds the finance portfolio, described the GST as a "great idea", but slammed the Centre over the way it was being implemented.
"Since the AAP government has been formed, we have not increased any tax on any item. On several items, Delhi government has reduced tax to 5 per cent from 12 per cent.
"I am not opposing the GST and instead I am flagging the points which the Centre should have taken while introducing the new tax reforms," he said.

Sisodia also said, "We should create business-friendly environment. Higher tax slabs like 18 to 28 per cent is unfair. Due to higher tax slabs, compliance rates will be reduced".

He said if there is lower tax rate, people will start paying taxes happily and there will be a shrink in the grey market.
During the programme, Sisodia said the government would hold a business conclave in collaboration with industry associations such as PHD Chamber of Commerce and Industry to collectively identify issues that still obstruct the ease of doing business in the city and to seek solutions.
The proposed business conclave will be hosted in next 30-40 days.
"Due to multiple agencies in city, I would request the Lt Governor to be part of a group where police, DDA, MCD, other agencies and industrialists will also be its members. The move will ensure ease of doing business in Delhi," the Deputy Chief Minister added.

He said that improving ease of doing business in the national capital is the foremost priority of the AAP government.