To scale to 10 per cent rate is "very challenging" and it will not depend on domestic factors only but on how the world is moving, he said.
On reforms, he said India has structurally reformed and there is no finishing line in reforms.
Mr Jaitley said the Goods and Services Tax (GST) started with different tax rates and they have rationalised rates on many items.
Going forward, future rationalisation of rates would depend on revenue collections, he said, indicating the merger of 12 per cent and 18 per cent rates into one while keeping a "thin" line of luxury and demerit items in the top 28 per cent band.
Currently, the GST has four rates of 5 per cent, 12 per cent, 18 per cent and 28 per cent.
The finance minister said a cogent GST mechanism has been developed and no country in the world has 5 per cent tax rate.