Simplifying GST Rates: A Path to Boost India's GDP by 1.5%

Saturday, 17 August 2024, 04:10

Simplifying GST rates can raise an additional 1.5% of GDP, according to IMF's Gita Gopinath. The need for structural reforms is crucial for India's growth. Gita Gopinath emphasizes the importance of continuous reforms to enhance the economic framework and fiscal policies in India.
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Simplifying GST Rates: A Path to Boost India's GDP by 1.5%

Boosting GDP through GST Simplification

Gita Gopinath, the Deputy Managing Director of the International Monetary Fund (IMF), stated that by further simplifying GST rates, India could potentially increase its GDP by an impressive 1.5%. She reinforced that structural reforms need to be a continuous process, emphasizing that ongoing adjustments to policies can significantly enhance growth.

Importance of Structural Reforms

According to Gopinath, structural reforms in India's taxation framework are critical for expanding its economic potential and resilience. It is essential to rationalize complex tax structures to encourage compliance and improve revenue collection.

  • Continuous process of reform
  • Rationalizing tax structures
  • Increasing compliance and revenue

This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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