New government should resolve pending issues in relation to GST: Vipul Shah

The $110 plus billion Indian chemicals industry is passing through a challenging phase. With growth decelerating and no major investment on the horizon, earlier estimates of the industry growth of 11% and an estimated $224 billion size by 2017, appear difficult. We hope that the government would tweak a few tax rates, bring about rationalisation in corporate tax, or simplify cess or duty structure.
 
As per one of the agendas of the honourable Finance Minister, we too would like to see the roll-out of the Goods & Services Tax (GST), at the earliest. We hope that the new government will be able to resolve all the pending issues in relation to GST. While this economic reform will go a long way to streamline growth, it is pertinent to highlight the need for a GST framework that encompasses and absorbs multiple taxes, currently levied at the state and local levels. 
 
Our other key expectations from the new government include: Setting up of chemical parks, 'zero duty' on the import of chemicals to facilitate easy availability and higher import of cheaper feedstock, tax holidays for players and a complete waiver of Special Additional Duty (SAD). All/most of these reforms, if implemented, will give the industry a much needed boost and take it closer to the growth estimates.
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Vipul Shah is the President, CEO & Chairman of Dow Chemical International Private Limited