WHAT EXPERTS SUGGEST

A panel under chief economic adviser Arvind Subramanian mooted a three-tier rate structure, with taxation of some essential goods at 12%, ‘demerit’ goods such as luxury cars and tobacco products at 40%, and remaining goods at a standard rate of 17-18% The National Institute of Public Finance and Policy, a premier research institute, favoured a standard rate in the 23-25% range if goods are taxed at three different rates. It also suggested a GST rate of 18-19% in case all goods are to be taxed in a uniform manner.