PANAJI
The State of Goa will benefit from the implementation of the Goods and Services Tax (GST) to the tune of an estimated ` 600-100 crore, Chief Minister Manohar Parrikar assured while admitting that overall the state would gain with the subsuming of state taxes like luxury and entertainment tax.
Speaking during the discussion on the Goa Goods and Services Tax Bill 2017, which was passed unanimously by the legislative assembly, Parrikar said that even if all else failed, the central government has promised protection to states from losses they would face, if any.
“It is safe to assume that (at present) the central (government’s) collection is ` 2000 crore at 15%. With the GST rate being fixed at 18% it will become ` 2400 crore. Of which we will get 50%, which is ` 1200 crore.
“We will lose at the most ` 700-800 crore to taxes like that of luxury tax and entertainment tax which will be subsumed by the GST. So the net gain will be ` 400 crore,” Parrikar said.
He, however, said that with the service sector now paying their taxes locally Goa would gain even further. “Right now companies like LIC and banks pay their service tax at their headquarters which is in Mumbai. After GST is in place, the taxes will be paid locally,” Parrikar said.
Parrikar went further to say that with Goa being a consumption and a service sector oriented state: “In the first year we should gain 600-1000 crore.”
Earlier, the assembly, both the opposition as well as the ruling, were at pains to point out the positives in the legislation with both claiming credit for bringing the bill to fruition.
“It was during the 2006-07 by the Government of Manmohan Singh that this bill was sought to be implemented to curtail inflation to cut indirect taxes. I wish it was passed 10 years back. The NDA opposition objected to the legislation. This reform could have brought may be 15-20 lakh crore rupees to the state between then and now,” Navelim MLA and GPCC president Luizinho Faleiro said.
