Service tax – paradigm shift needed to push for growth of services sector

THE renewed focus on the services sector as the key driver of the nation’s economic engine underscores the need for a consumption tax that would facilitate its development into a strong and resilient economy.

As transactions in the services sector become far more varied and complex, the introduction of the Goods and Services Tax (GST) to replace the existing consumption tax on services – service tax and sales tax – becomes even more imperative.