Farm goods, services to be dearer; GDP to gain: GST task force
New Delhi: Introduction of GST would help
attain higher GDP growth and pull down prices of manufactured
items, but would make farm goods and services expensive, the
13th Finance Commission Task Force on Goods and Services Tax
(GST) said here today.
"Prices of agricultural commodities and services are
expected to rise," said the report of the GST task force.
"The prices of agricultural goods would increase between
0.61 and 1.18 per cent, whereas the overall prices of all
the manufacturing sector would decline between 1.22 and 2.53
per cent," the report added.
Food prices have been relentlessly rising and was over 19
per cent year-on-year in the last week of November.
The switchover to the GST regime from the current tax
system would help better allocation of resources and a higher
"The existing tax system introduces myriad distortions
which favour some goods and services at the expense of others.
These distortions yield inefficient resource allocation and
consequently, inferior GDP growth," it said.
The problem of the current tax system could be removed
with the switchover to the new tax regime under GST, it said.
Citing economic think-tank NCAER`s study, prepared for
the Commission, the report said, "implementation of the GST
across goods and services is expected ...to provide gains to
GDP somewhere within a range of 0.9 to 1.7 per cent."
The corresponding change in absolute values of GDP over
2008-09 is expected to be between Rs 42,789 crore and Rs
83,899 crore, it said.
More from India
More from World
More from Sports
More from Entertaiment
- Panel discussion on Mumbai HC allowing women to enter Haji Ali Dargah
- Panel discussion on Mumbai HC allowing women to enter Haji Ali Dargah Part II
- Uttarakhand: MBBS students builds toilets in a village in Rishikesh
- Digital detox helps to get rid of smartphones addiction
- Watch: Syrian boys crying, hugging each other after their brother is killed in airstrike
- Odisha shocker: No ambulance, staff break bones of woman's dead body to carry it on a sling
- Insult to Prophet Mohammad: Dispose off case against Hindu Mahasabha leader in 4 weeks, SC tells Allahabad HC
- SHOCKING! Man beaten to death in Delhi for golgappas - Watch
- RSS questions Rahul Gandhi's remark, demands apology
- Delhi HC rejects plea against Raj Thackeray's security cover