Government Forecasts US$15 Billion Income from New Tax

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Jun. 30 – India’s new tax system is projected to earn the government US$15 billion annually through the Goods and Service Tax as well as provide more employment, spread the tax burden and increase exports when it is implemented in April, 2010.

The new tax system, which will replace all major central and state taxes, is expected to lower tax rates by broadening the tax base and minimize exemptions, Vijay Kelkar, Chairman, of the 13th Finance Commission told the Economic Times.

Specific plans for the GST will be announced next week by the Finance Minister Pranab Mukherjee. The GST is set to include construction, real estate and railway activities under its regime to increase government revenue.