GST and the Kerala reality: this is how the state lost out
Kerala finance minister Thomas Isaac’s claim that the goods and services tax (GST) will bring more tax revenue to the state has been debunked by the Kerala public expenditure committee.
This has been revealed in the first report of the committee headed by renowned economist Pinaki Chakraborthy.
The committee, set up by the present government, says that GST has not augured well for the state.
The government is facing a revenue loss because most of the products that used to generate tax revenue for the state has seen a reduction in the levy.
What Issac says.
Since Kerala is a consumer state, the rise in tax revenue will go up to 20%.
Once the tax revenue picks up, within four years there will be solutions to Kerala’s financial problems.
Kerala will be getting the tax levied on products that are coming to its shores from other states.
However, there are troubles because of the hasty implementation of GST.