Page 12 - MSME April-May 2017
P. 12
Special Article Lower logistical overheads: As GST is tax slightly better at 3.6% in 2018. Recent estimates neutral it will eliminate time consuming border confirm that, at least in the short term, the global tax procedures and toll check posts and encourage growth is likely to be better than these estimates. supply of goods across borders. Unified market: The South Asia region, especially the countries GST will allow flexibility in transfer of goods across in our Constituency, continues to deliver on its states and reduce the cost of doing business, as the promise. reform will cut down multiple taxes imposed by India’s growth is expected to be 7.1% in 2017 state and central government. and 7.5% in 2018. Bangladesh is expected to While the SMEs will enjoy the tax neutrality, grow at 6.8% and 6.5% respectively. Sri Lanka is reduction in duty threshold is one of their main expected to climb to an average of 5.1% growth concerns in warming up to the GST. Experts say in 2017-19 period. Bhutan is expected to grow at every major reform is faced with certain hurdles, an average of 11% over the same period. India, and arguments from various stakeholders. he says India, continue to undertake significant However, from an SME perspective, GST will bring reforms and stay focused to promote investment to in many positives compared to the current systems ensure that the region continues to grow at these such as easy process of availing input credit, single rates in the near future. point tax, elimination of cascading tax system, and According to him, India’s optimistic growth simpler taxation. rates can be attributed to the committed political While hopes rests with GST to boost the will, efficient governance and successful GDP growth and reduce the fiscal deficit. The implementation of economic reforms. India has extent of such impact will depend on a favorable successfully implemented one of the largest consensus on GST rates for all business segments currency reform initiatives ever implemented, and integrated implementation of the same. which will move the Indian economy to a less cash trajectory, increase tax compliance and reduce the Unfazed by the intransigent adopted by the threats from counterfeit currency which acts as a states and center on various issues, consensus was source of terror funding, Finance Minister says. accomplished, and Parliament put its stamp of As the demonetization has laid the foundation approval on the legislation, which is being billed of a vibrant digital economy and a financial system as one of the most noteworthy economic reforms based on universal unique identity and mobile since Independence. States also followed the platform, the government has taken all steps to course. ensure an integrated Goods and Services Tax (GST) The Prime Minister has said that the Goods to make India a single common market and free the and Services Tax shows the strength and resolve tax system from multiplicity of levies and controls. of the federal structure. He gave credit to all Chief Shri Jaitely points out this is in continuation with the Ministers for coming on one platform for this cause, country’s reform agenda that allows private capital keeping aside ideological and political differences. and entrepreneurial spirit to flourish. Successful Thanking the Chief Ministers, he said consensus on design, building a national consensus, and a strong GST will go down in history as a great illustration technical platform make GST in India a historic tax of cooperative federalism. He said GST reflects reform of global significance. the spirit of “One nation, one aspiration, one Country’s Business sector has now to come determination.” with terms with GST and ensure its implementation Finance Minister observes that the global in letter and spirit. n economy is expected to grow by 3.5% in 2017 and 10 Laghu Udyog Samachar
   7   8   9   10   11   12   13   14   15   16   17