GST reduced debt, prevented jump in other taxes: Sawant

Panaji: Strong GST collections enabled govt to reduce the state’s yearly market borrowings and stave off an increase in taxation, said chief minister Pramod Sawant on Monday. He also said that there are challenges that need to be addressed, particularly faster refunds and simplification of compliances.
Sawant, who was speaking at an event held by the Goa Chamber of Commerce and Industry (GCCI) and S S Dempo College of Commerce and Economics, said that significant strides have been taken to create a streamlined and transparent tax system for the entire country.
“If you see, in my last budget, I did not increase any tax and this is only because of the GST collections that it has been possible. The revenue collection has increased through the state GST and state share in central GST. It is a boost for exports and a reduction in logistics cost,” said Sawant.
Ironically, govt recently increased VAT on fuel, hiked fees for land conversion and power tariffs to increase revenue collection for the state.
Sawant said the Centre has managed to achieve the primary objectives of simplifying India’s indirect tax regime, eliminating tax cascading, and curbing tax evasion through the GST system.
“GST has decreased the number of taxes, compliances burden and the overall tax burden on the common man, while significantly increasing the overall collection. Quick economic recovery has led to an all-time high GST collection for Goa in the past few months. It is a significant shift from the complex and fragmented tax system that existed before,” he said.
Sawant said that as a destination-based tax, GST regime has also brought benefits for Goa.
“The state economy is driven by the tourism trade and small-scale industries and they have benefited immensely by the streamlined tax regime. The GST compensation received by Goa over the years has helped the state to meet all the revenue expenditures and commitments. Not only did taxes increase but if you look at the last five years, there was no shortage of spending on infrastructure,” said Sawant.
The chief minister pointed out that while the state was permitted to borrow up to Rs 3,500 crore through state development loans, govt raised funds through bonds worth just Rs 1,800 crore in the last financial year.