New Delhi, 1 July (IANS). Veteran economist and former IMF Executive Director, Dr. Surjit Bhalla said on Tuesday that the Goods and Services Tax (GST) in India is one of the biggest success stories in the last decade, as it has increased the formal economy and compliance.
In an exclusive interview with news agency IANS, Surjit Bhalla said that GST has not only increased tax revenue, but more than this, more business and individuals have come under formal tax.
He told IANS, “GST has done well and more people have come under formal tax. This is a good sign.”
He said that the Indian economy has done well since the implementation of GST in 2017-18, it has replaced the earlier value added tax system.
Bhalla said, “It is one of the stories of great success in the last ten years.”
He credited the positive results of GST to strong compliance, more efficiency and comprehensive coverage of tax base.
The economist further said, “On both within the government and outside, it is believed that the economy has done well and GST has made positive contribution in place of the Value Added Tax System.”
Commenting on India’s growing global stature, Bhalla said that India has now become the fourth largest economy in the world and is the fastest growing economy among major economies.
He said that with an increase in productivity due to better education and healthcare, India is in a position to achieve even stronger growth in the coming years.
Recently launched Operation Sindhu Sudarshan was described by Bhalla as a very positive step, as well as said that the increased defense preparation contributes to both national security and economic confidence.
The economist further said, “Defense is a major national priority. More defense spending provides more protection and the economy is strong. This operation will help both defense preparation and economic confidence.”
-IANS
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