New Delhi: NK Singh, chairman of the 15th Finance Commission, has said the tax structure needs to have ‘predictability’ and stability. After a meeting of the commission’s Economic Advisory Council on Monday, Singh said the commission would be making suggestions on the tax structure, which was for the GST Council to consider.
Singh said it was felt that states – assured of a 14% compounded annual growth rate – were complacent about pursuing tax revenues or asserting their views at the Council. He said there was also a view within the Council that compensation to states should be predicated on revenue buoyancy and nominal GDP growth rate. A Finance Commission statement said issues related to stabilisation of GST, relationship between the GST Council and Finance Commission, and states’ compensation were discussed.
The need for bringing in fiscal transparency was underlined, Singh said. He also said the commission would give its recommendations only in respect of 28 states, while Jammu & Kashmir would be treated as a Union Territory.