Maharashtra is currently working on a formula to arrive at the rate of GST it would want the Centre to levy and will also look at how items that were not taxed thus far in the state continue to remain outside the ambit of GST.
Maharashtra’s finance minister Sudhir Mungantiwar on Wednesday told ET that the state government is looking at various calculations that include its current growth rate, its contribution to the service sector before finalising the GST rate.
“We have asked the Mumbai University’s Economics department to study each and every detail. Only once the report comes up, would we be able to tell the Centre what the GST rate should be,“said Mungantiwar to ET.
He added that the state would also ensure that the exemptions for certain items that are currently given in the state are carried on in to the GST. “ We will put our point that drugs of cancer, drugs used in dialysis and other important life saving drugs should also be exempt from the GST. We have to accept that the diseases have been caused directly or indirectly by our society , government and since we have spoiled the environment the government has to take responsibility for that. The taxes should come down for drugs that are used to treat such diseases,“added the finance minister.
The minister also said that the GST would foster `real competition’ between other states as earlier states were `boosting growth artificially’. “State governments used to suffer heavy losses by announcing hefty tax exemptions in order to get companies to invest in the state. Now with that out of the way, companies will be considering natural resources, skill, and availability of land, law and order and ease of doing business before investing,“said the minister.
The finance minister also added that they are working on ways to generate revenue without increasing taxes. “We are looking at various avenues to generate revenues.“ – www.economictimes.indiatimes.com [01-09-2016]