This refers to Parthasarathi Shome’s article “The Budget’s massive tax effort” (March 19). The goods and services tax (GST) regime has become central to discussions on this year’s Budget. GST will certainly benefit industry and its successful implementation will go a long way in addressing all tax-related issues. The aim of GST is to simplify the present indirect tax structure that is not only full of anomalies but also attracts multiplicity of taxes.
Indeed the new GST regime will bring long-term benefits. For example, the export industry is either zero-rated or exempted from state taxes (that now account for four to six per cent of the total export value of a product), according to GST norms. The same benefits would go to special economic zones (SEZs). As a result, the country’s export houses would remain competitive.
P Senthil Saravana Durai, Hyderabad
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