The Indian Staffing Federation (ISF) has called for a reduction of the 18% Goods and Services Tax (GST) on recruitment agencies, arguing it would enhance employment and wages for contract workers. With unemployment being a critical issue in India’s current election campaign, the ISF suggests that lowering the GST to 5% would encourage companies to hire more contract workers through agencies, potentially increasing formal employment and tax revenues. Last year, third-party recruiters paid $2.9 billion in taxes on the employment of 5.4 million staff across various sectors.
India Urged to Cut 18% Tax on Recruitment Agencies to Boost Employment
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