GST may become two-tier tax with merger of 12, 18 pc slabs: Jaitley

TIL Desk/Business/New Delhi/ Former Finance Minister Arun Jaitley Monday said the 12 and 18 per cent tax slabs in goods and services tax (GST) could be merged going forward as revenues increase, thereby effectively making it a two-tier tax.

Penning a Facebook post on the second anniversary of GST rollout, Jaitley said as many as 20 states are already showing more than a 14 er cent increase in their revenues and do not require the centre to compensate them for revenue loss arising out of GST implementation.

Jaitley, who in May wrote to Prime Minister Narendra Modi expressing his unwillingness to be a Minister in the Modi 2.0 government due to health reasons, said that most items of consumer use have been brought in the 18 per cent, 12 per cent and even 5 per cent category.

The GST Council, chaired by Finance Minister and comprising state Finance Ministers, has reduced tax rates over the last two years which led to revenue loss of more than Rs 90,000 crore, he said.