The finance ministry today said the tax burden on people will come down by 25-30 per cent with the introduction of the proposed Goods & Service Tax, which seeks to subsume various levies like excise and VAT.

"Distortions in indirect tax system will be fully removed and addressed after the GST is put in place... burden on tax payers will be reduced by at least between 25-30 per cent and the new system will ensure complete transparency to ensure smooth tax compliance," Revenue Secretary P V Bhide said.

Speaking at a function of industry body Assocham, he also said the draft legislation on GST has been referred to legal experts and would be finalised shortly to enable the government achieve target of implementation of goods and service tax.

The government has planned to introduce GST from April 1, 2010. The new tax regime will replace excise duty and service tax at the central level and value added tax at the state level, besides the cess, surcharges and local taxes being levied on good and services

However, there are apprehensions about the GST implementation from the next fiscal. A task force of the 13th Finance Commission had suggested postponing the GST implementation by six months to October 1, 2010.