New Delhi, Jan 2 The new indirect tax regime of GST does not envisage a single slab taxation rate structure as found in some developed economies, Parliament was informed on Tuesday.
Finance Minister Arun Jaitley said in the Rajya Sabha during Question Hour that countries which had applied a uniform tax rate on all commodities are nations where the entire population was above the poverty line.
"In India, food items have been placed in the zero or minimum slab, while luxury items get taxed more," he said.
The Finance Minister, however, said the process of rationalising the rates of items within the four-slab rate structure of the Goods and Services Tax (GST) would continue.
The new indirect tax regime unifying the Indian market has four tax slabs of 5, 12, 18 and 28 per cent.