Finance Minister Arun Jaitley on Wednesday said goods may become “slightly cheaper” once all other taxes are removed after implementation of the Goods and Service Tax.
“Once all other taxes are removed, goods will become slightly cheaper,” he said.
Noting that both the Central and state Governments are pooling their sovereignty to have this tax regime, he noted that India, despite being one political entity, remained different economic entities with states having different taxes.
“India remained different economic entity. Trucks could be seen waiting outside state border, there was no free flow of goods,” the minister said.
He also clarified that commodities like food items will have zero tax.