The industry should not perennially demand a reduction in taxes as the government needs funds to implement welfare schemes for the poor, Union minister Nitin Gadkari said on Monday while addressing an event in New Delhi.
“Do not ask for reducing Goods and Services Tax (GST) 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 as quoted by news agency PTI. “…we want to reduce the taxation, but without taxation also, the government can not run a welfare state,” Nitin Gadkari added. The minister further added that it is the government’s vision to take the tax from the rich people and give benefits to the poor. “So the government has also got its own limits,” he said.
Nitin Gadakri also said the logistics cost in India will come down to 9 per cent within two years. According to the minister, presently India’s logistics cost is 14-16 per cent.
“I assure you that within two years…our logistics cost will be 9 per cent. So we will be more competitive in the international market,” he said. In China, the logistics cost is 8 per cent and in the US and European countries, it is 12 per cent, the minister said.
Nitin Gadkari also emphasised that India Inc. needs to reduce the cost of production without compromising the quality. The minister noted that by increasing capital investment, India is going to create more jobs.
“You are not only wealth creator but job creator…we need to advantage of this golden era,” he said. Further, Gadkari stressed the need to reduce imports and increase exports to make India a developed nation.
