Implementation of the goods and services tax (GST) will double the gross domestic product (GDP) in the next 8-9 years, Union Minister for Railways Suresh Prabhu has said.

He said, “The GST aims at increasing the number of taxpayers. And, as the tax revenue rises, the GDP will also increase. Our GDP is $2.5 trillion today and in the next 8-9 years, it will grow to $5 trillion if our tax revenues increase. In 15years, our GDP will become $15 trillion.”

The Railways Minister took part in an interaction with the members of the industry, trade and commerce at the Chamber Towers in Coimbatore. The interaction was organised by the Indian Chamber of Commerce and Industry, the Confederation of Indian Industries, the Southern India Engineering Manufacturers’ Association, the Coimbatore District Small Scale Industries Association and the Indian Institute of Foundrymen.

The Railways Minister said the increase in the GDP would bring in more infrastructure projects into the country and also reduce debt burden.

“The higher the GDP, the greater will be the investment in infrastructure projects,” said Prabhu.

“The rise in GDP will also enable us to reduce the debt burden. At present, India’s 52 per cent GDP goes into paying debts,” he added.

Members of the industry and trade associations placed various queries to the Railway Minister and the Principal Chief Commissioner of GST, Chennai, C P Rao.

“We have taken queries from people on GST. A compiled version of it will be submitted to us which will be passed to the GST Council for consideration,” said Prabhu.

Source: Times of India