Industries Must Stop Demanding Tax Cuts, Says Nitin Gadkari; Warns Against Endless Requests for GST Reductions

Union Minister Nitin Gadkari, known for his straightforward approach, has called on industries to refrain from continuously demanding tax cuts, stating that the government needs adequate funds to support welfare schemes for the underprivileged. Speaking at an event in New Delhi on Monday, Gadkari emphasized the challenges of balancing tax reductions with the financial demands of running a welfare state.  

"Do not keep asking for reductions in Goods and Services Tax (GST) and other taxes. This is an ongoing process, and if we reduce taxes today, you will ask for more tomorrow—it’s human psychology," Gadkari said, as reported by news agency PTI. He added, "While we aim to lower taxation, the government cannot function without revenue. Running a welfare state requires resources."  

Gadkari explained that the government’s approach is to collect taxes from the affluent and use those funds to benefit the poor. However, he also cautioned that the government has its limitations and cannot endlessly accommodate demands for tax cuts.  

Logistics Costs Set to Drop, Boosting India’s Global Edge

In a promising update for the industry, Gadkari announced that India’s logistics costs, currently at 14-16%, are expected to drop to 9% within the next two years. This reduction, he said, will significantly enhance India’s competitiveness in the global market.  

"I assure you that within two years, our logistics costs will be at 9%. This will make us more competitive internationally," Gadkari stated. For comparison, he noted that logistics costs are 8% in China and 12% in the US and European countries.  

Call to Reduce Production Costs Without Sacrificing Quality

Gadkari also urged Indian industries to focus on reducing production costs without compromising on quality. He highlighted that lowering costs would not only improve competitiveness but also create more employment opportunities. "Afterwards increasing capital investment, we are going to generate more jobs," he said, reiterating the government’s commitment to economic growth and job creation.  

His remarks come amid ongoing demands from industries for tax relief to ease financial pressures. However, Gadkari’s message was clear: while the government is working to streamline taxation and reduce operational costs, industries must also contribute to  nation’s development by understanding the broader economic challenges.  

As India aims to strengthen its global economic standing, Gadkari’s comments highlight the need for a collaborative approach between the government and industry to achieve sustainable growth and equitable progress.