Global rating agency Fitch Ratings has said that the Goods and Services Tax (GST) reform, being pitched as India's biggest reform that will come into effect from July 1, may not boost revenues significantly in the next few years.
Commenting on the issue, Thomas Rookmaaker, Director, Sovereigns and Supranationals Group, Fitch Ratings said, "We do not expect it will lead to significantly higher government revenues in the coming few years."
"It may indirectly boost revenues in the medium term through higher GDP growth and more transparency," he added.
Rookmaaker further said that it will facilitate trade within India and reduce transaction costs.
As per reports, along with GST, Fitch Ratings has recognised demonetisation as a bold step aimed at curbing the use of black money and Insolvency and Bankruptcy Code, Aadhaar, Make in India, FDI-related measures and labour market laws as other strong reforms.
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