The Union budget will get further thinner once the Goods and Services Tax (GST) will be in practice. The tax reforms will affect the bill as it aims to develop a common domestic market and cut out multiple levies.
Experts are anticipating that Part B of the budget will be the most awaited section. It will showcase a very trimmed look after GST becomes a reality. And, after the announcement of Direct Tax Code (DTC), length of the budget will be further trimmed.
"Part two of the budget where you have the tax rates will be reduced by more than 50% and you will only have direct tax rates," said a former expenditure secretary, as reported in Times of India.
"I don't know in what form DTC will come. And the GST rate will be recommended by the GST Council which will be then be fixed by Parliament because under the Constitution, only Parliament has the power to decide on taxation," he said.
According to the experts, GST rate maybe fixed for two-three years and it may just be mentioned in the budget. “Secrecy of the budget may come down as the recommendations of the council on rates will be in public domain,” said a former economic affairs secretary.
Now government is bound to focus on policy announcements and detail outcomes of various proposals. The changes on account of GST are expected to reflect from the 2018-19 budget.