Uniform 16% tax rate should be applied since higher rates are decreasing revenue; focus should be given on increasing the scope

Instead of many rates of Goods and Services Tax (GST), a uniform rate should be implemented. Along with this, instead of increasing the rate of taxes, its scope should be increased. Former Chairman of Central Board of Indirect Taxes and Customs PC Jha said, this will bring more people under the tax net and tax collection in the government treasury will also be more.

In a seminar organized by Think Change Forum (TCF), PC Jha said, we have many rates in GST. This is not right. In such a situation, it would be right to consider three rates. Tax officials should understand that high rates encourage tax evasion. The size of illegal trade is increasing in India. The main reason for this is high taxes.

This eventually affects the country's economy adversely. Ernst & Young LLP partner Rajeev Chugh spoke about simplifying the existing provisions in the taxation system. Reduction in tax rates increases people's disposable income. Even companies can spend more. If rationalized, it can give a boost to the economy.

AMRG & Associates senior partner Rajat Mohan said, "Tax-related departments are heavily dependent on revenue from litigation to meet their targets. However, the government's success rate in litigation is disappointing. The government loses more than 50 percent of the cases before they reach the Supreme Court.".