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GST system badly designed, executed says Tamil Nadu FM Thiaga Rajan

  • 28 Jun 2021
  • Garima
  • 344

Tamil Nadu finance minister P Thiaga Rajan said on Friday that the Goods and Services Tax (GST) system had been badly designed and executed.

He would not even agree to put a toothbrush in the GST system if it wasn’t already there, Rajan said, when asked about the likelihood of bringing motor fuels under the GST.

“When we went into it, we went with apprehension,” he said. “We knew we were losing our independence of taxation as States. Already all direct taxation was Centre, the indirect was partial with us and the Centre. We went in with a lot of trepidation and fear and some hope of outcomes that would give long-term and widespread benefit.”

However, nearly five years down the line, the fears have grown immensely while the benefits have not even been realised by 20-30%.

“Sensible people may agree or disagree on a design or system or platform, but logic says you keep re-evaluating based on the outcomes. Have you achieved the goals you wanted? Have you avoided the failures you feared? If the answer to both those is ‘no,’ logical people would say ‘re-tool, re-structure,” Rajan said while addressing a virtual meeting organised by IIM-B’s Alumni Association, Chennai Chapter on ‘Tamil Nadu: The Road Ahead.

Source- https://economictimes.indiatimes.com/news/economy/policy/gst-system-badly-designed-executed-tamil-nadu-finance-minister-thiaga-rajan/articleshow/83849532.cms

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