CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. IMF Supports GST In India

IMF Supports GST In India

by Mary Swire, Tax-News.com, Hong Kong

13 March 2015


The International Monetary Fund (IMF) has urged India to proceed with its planned goods and services tax (GST) to raise revenue for growth-enhancing capital spending and social programs.

A well-designed GST should be implemented with minimal exemptions and a moderate single rate, as it would create a single Indian market, enhance the efficiency of goods and services trade between states, and thereby boost gross domestic product (GDP) growth, the IMF said in its 2015 Article IV consultation report with India.

Further revenue gains can be achieved by instituting tax administration reforms, including by reorganizing tax administration along functional lines and merging the indirect and direct tax boards, the IMF said.

The Fund noted that India's ratio of revenue to GDP is considerably below its peers.

The report pointed out that the Indian Government aims to narrow the deficit to three percent of GDP by 2016/17 but detailed measures underpinning this path have not yet been articulated.

TAGS: tax | economics | India | fiscal policy | revenue guidance | gross domestic product (GDP) | International Monetary Fund (IMF) | goods and services tax (GST) | tax reform | services

To see today's news, click here.

 















Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »