1. The Singapore Government has decided to raise the rate of GST from 7% to 9%. This will be fourth increase after GST was implemented in 1994 at 3% and last increase was in 2007.
2. The Finance Minister of Singapore said that increase would take effect between 2021-2025.
3. This likely to stun every member of GST Council and Finance Minister in India that duty hike is to be effected over a period of 4 years and announcement is made 3 years in advance.
4. If this happens in India how industry lobbying will intensify in India and opposition parties will use this opportunity to launch a new agitation against the proposed increased in duty.
5. Also General Elections in Singapore will be held before January 2021. In other words higher rate of GST was implemented after general elections and it was implemented by new elected government. In India, duties and taxes are often cut before general elections.
6. Currently in India there is no gap between the announcement and implementation of tax rate change.
7.If there is a advance notice of a rate change , industry would be actually benefited by planning its production and sales in keeping with the new duty regime.
8. There is another advantage of early announcement that rate change was announced by GST council which comprise of all state government and central government representatives. So, political anger against any particular government cannot be directed, since it is a collective decision of GST Council.
2. The Finance Minister of Singapore said that increase would take effect between 2021-2025.
3. This likely to stun every member of GST Council and Finance Minister in India that duty hike is to be effected over a period of 4 years and announcement is made 3 years in advance.
4. If this happens in India how industry lobbying will intensify in India and opposition parties will use this opportunity to launch a new agitation against the proposed increased in duty.
5. Also General Elections in Singapore will be held before January 2021. In other words higher rate of GST was implemented after general elections and it was implemented by new elected government. In India, duties and taxes are often cut before general elections.
6. Currently in India there is no gap between the announcement and implementation of tax rate change.
7.If there is a advance notice of a rate change , industry would be actually benefited by planning its production and sales in keeping with the new duty regime.
8. There is another advantage of early announcement that rate change was announced by GST council which comprise of all state government and central government representatives. So, political anger against any particular government cannot be directed, since it is a collective decision of GST Council.
No comments:
Post a Comment