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CII urges government to roll out Goods and Services Tax

Govt should avoid raising excise duties in the upcoming union budget for the success of the Make in India programme

IANS  |  New Delhi 

The Confederation of Indian Industry (CII) Sunday urged the government to speedily implement the Goods and Services Tax (GST) Bill tabled in the Lok Sabha, allowing industry participation in the discussions on the proposed indirect tax regime.

"hopes that would be implemented at the earliest keeping in mind that it should subsume all taxes, be applicable to all products and services, and involve a reasonable Revenue Neutral Rate (RNR)," the chamber said in a statement.
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"believes that industry should be allowed to participate in the Task Force on RNR and other significant issues such as Integrated GST, Place of Supply Rules and draft legislation," it added.

The chamber further said the government should avoid raising excise duties in the upcoming union for the success of the programme.

"While we understand the imperative to garner fiscal resources, feels that demand is still fragile. Moreover, the manufacturing sector continues to be vulnerable," said Chandrajit Banerjee, director general, CII.

"Under these circumstances, it would be prudent to allow excise duties to remain at current 12 percent," he added.

"On central sales tax, CII has requested for reduction in rate from 2 percent to 1 percent in view of delay in implementation of GST," it added.

With last month's rate cut by the Reserve Bank, industry is looking at the session of parliament for progress on the proposed Bill that would absorb most central, state and local levies by April 2016.

First Published: Sun, February 08 2015. 15:30 IST