Karnataka has ably managed the tax system: CM Bommai on GST day

Karnataka Chief Minister Basavaraj Bommai on Friday presented the Chief Minister's awards organised by the Commercial Taxes department and said that the state ably managed the GST tax system.

The Chief Minister was speaking at a function to celebrate GST (Goods and Services Tax) Day.

"Karnataka is at the forefront in adapting to the change in the tax regime. It has been made possible by the expertise of the officers and the adoption of technology. GST was introduced after much deliberations with all the states for over 10 years by the then Union Finance minister Arun Jaitley," said Bommai.

He also highlighted that the southern state had been seeking to maintain a lesser number of tax slabs.

"Seeking to maintain a lesser number of tax slabs, we have decided to have 3 slabs and a special tax slab," he added.

Stressing on the principles for taxation he said, "There are some principles for taxation. It should be purposeful, it should be affordable, and it should be accountable and equitable. There will not be any problems in resource mobilisation if we follow these principles."

Recalling his maiden budget after the Covid crisis, Bommai recalled how succeeded in raising additional resources without imposing any additional tax burden by ensuring better compliance. "Within 6 months we exceeded the target by Rs 15,000 cr and about Rs 7000 cr of that came from the GST," he said.

"It is equally important to show greater responsibility while spending the tax revenue as it is the hard-earned money of the common man," he pointed out.

The nation celebrates July 1 as GST Day is celebrated on July 1 to commemorate the implementation of the Goods and Services Tax (GST) that replaced the old indirect tax regime in the country.

The day was first celebrated on July 1, 2018, on the one-year anniversary of the implementation of the tax system.

( With inputs from ANI )