World Trade Organization Organisation Mondiale du Commerce Organización Mundial del Comercio

Malaysia 2:

Report by the Secretariat (WT/TPR/S/249 01),Page x, paragraph 7

7. ...In order to meet these objectives, India implements a mix of policies including tax incentives, export promotion, and credit facilitation schemes, to "neutralize" the cost of imported inputs used in exports; however, such schemes may contribute to the complexity of India's trade regime….

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  What are the measures undertaken to reduce the complexity of India's trade regime?
  

Reply: Exercise to simplify the procedure and reduce the transaction cost has already been taken. Continuous dialogue with all stakeholders is a permanent feature of policy making and taking mid course corrections.

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  Are there any plans to standardize or streamline taxes across the states in India?
  

Reply: The states have powers to levy certain taxes given in list II of Schedule VII of the Constitution of India. Therefore States can fix tax rates as per their requirements, which vary across states. However the proposed goods and service tax (GST) is likely to bring a fair degree of uniformity on tax related to supply of goods and services, which is the main source of states' revenue. For further details Para 51 of the Governments Report (WT/TPR/G/249) may be referred.