While the finance ministry today admitted to Rs 20,000-22,000-crore shortfall in the indirect tax collections during the current year, it went on to assure the industry that the tax burden on people would come down by 25-30 per cent with the introduction of the proposed goods and services tax (GST).
The new tax is expected to subsume various indirect taxes, including excise and value-added tax. The reduction in tax burden through GST, however, might not mean a cut in government revenue since the rates being discussed for GST are designed to be revenue neutral even as the new tax regime is expected to widen the tax base.
