Haryana Finance Minister Capt Abhimanyu today said after the implementation of Goods and Services Tax (GST) system in the country, the tax burden on consumer could drop by 15-20 per cent.
"With the implementation of GST, not only the consumer tax will reduce, but prices of various other essential goods will also come down," he said in a release here.
Abhimanyu has returned from his tour to Australia as a representative of High Powered Committee of State Finance Ministers constituted by the Centre.
He said the GST system is expected to be implemented in the country from April 1, 2016.
The minister said that adopting one tax system would benefit in a number of ways and that the GST system would be fully computerised.
GST would significantly benefit traders' community as they would not face any inconvenience in getting their refund.
He said that a GST system would keep a check on tax evasion which would further strengthen the economy of the country.
When asked about the possibilities of revenue loss to the states with the implementation of GST, the minister said the GST Bill has a provision that in case a state suffers a loss after the implementation of this system, it would be compensated by the Central Government for five years.
He said the GST system has been successfully running in Australia for the last 15 years and it has registered an increase of 1.5 per cent in GDP.
The Finance Minister said that the representatives of High Powered Committee of State Finance Ministers had held series of meetings with officers at Sydney and Canberra and deeply studied the GST system.