'If We Reduce The Tax, You Will Ask For More': Nitin Gadkari To Industry On Reducing GST

Union minister Nitin Gadkari requested the industry stakeholders not to constantly demand a reduction in taxes because the government needs funds to implement welfare schemes for the poor.

The road transport and highways minister said the logistics cost in India will come down to 9% within two years while addressing an event.

"Do not ask for reducing Goods and Services Tax and taxes, it is a continuous process which is going on. If we reduce the tax, you will ask for more, because this is human psychology," Gadkari, who is known for his frank views, said.

"...we want to reduce the taxation, but without taxation also, the government can not run a welfare state," he added.

The minister explained that it's the government's vision to take taxes from the rich and provide essential benefits to those that need it in the nation.

"So the government has also got its own limits," he said.

India's logistics cost is currently 14-16% according to the minister.

"I assure you that within two years...our logistics cost will be 9%. So we will be more competitive in the international market," he said.

The minister compared this to China's logistics cost which was 8% and said that in the US and European countries, it is 12%, the minister said.

Indian Minister Nitin Gadkari emphasized the need for India's industries to reduce production costs without sacrificing quality, stressing that this can be achieved without compromising on standards.

Gadkari also highlighted the importance of increasing capital investment, which he believes will lead to job creation, positioning Indian businesses as both wealth and job creators.

"You are not only wealth creator but job creator...we need to advantage of this golden era," he said.

In order to bring India closer towards becoming a developed nation, the minister underscored the necessity of reducing imports and boosting exports.

(With Inputs From PTI.)