Jaitley’s last full Budget may buck the trend due to GST

With GST realising the dreams of the pre-Independence nationalist bourgeoisie of a unified market through a single tax regime, replacing the earlier system of multiple central and state taxes, this year’s budget will need to consider only those items like petroleum products that still remain outside the purview of GST. 

The 2018-19 budget could thus contain changes in customs and excise duties on these remaining products, which for most others have been subsumed under GST. 

In direct taxes like income tax and corporate tax, Jaitley hinted at some relief for taxpayers as he made a case for rationalisation of the direct tax structure since “the tax base has expanded.” 

At an event here, he said: “In income tax, the base has become larger; it’s bound to enlarge. And, therefore, charging higher rates from few selected groups -- which has traditionally been done -- is an area which has been changing.” Net direct tax collections saw a surge of 18.7 pc till January 15 this fiscal, against the corresponding period last year.