Proposed tax Reforms to Boost Industrial Growth

Thesynaergyonline Economic Bureau, July 13, 2010
“THE proposed Goods and Services Tax (GST) would revolutionise the indirect tax regime by facilitating payment of almost all indirect taxes by the manufacturer through a single challan”, said Mr Sunil Mitra, Secretary, Department of Revenue, Government of India while speaking at a panel discussion jointly organised today by CUTS International and the Department of Economics, University of Rajasthan to deliberate on the distinctive features of Direct Tax Code (DTC) and GST .

Mr Mitra laid great stress on the important role that the proposed tax reforms could play in raising resources for the country’s infrastructure development which in turn is imperative for sustaining the rate of economic growth. Earlier A.D. Sawant. Vice Chancellor, University of Rajasthan also had drawn attention to the role of taxation in facilitating infrastructure development while stressing the need to check tax evasion.

Pradeep S Mehta, Secretary General, CUTS International, lauded the consultative process underlying the mentioned reform of the tax regime. He highlighted the increase in tax revenues as a proportion of the Gross Domestic Product that has taken place through reforms in the recent past, a trend which the DTC and DST would help continue.

Mr N.M. Ranka, Senior Advocate, praised the reforms as they would do way with loopholes in the current system of taxation and reduce the incidence of complex litigation He, however, pointed to the need for improving the accountability of tax assessing officers. Pankaj Ghiya, renowned lawyer, echoed his optimism about the reforms and opined that the GST would make our manufacturing exports more competitive by reducing costs for manufacturers.

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