Speaking during the interactive session with the Ministry of Finance, organized by the Confederation of Indian Industry (CII), Revenue Secretary in the ministry of finance made a strong pitch for rejuvenating growth in industry as collection of taxes are intertwined with the fortunes of industry.
According to Revenue Secretary Sumit Bose, achieving the targeted levels of growth is a pre-requisite for achieving the revenue targets envisaged in the budget. The underlying tax buoyancy needs a push from acceleration in growth. He further stated that in addition to the host of measures announced in the budget, non-legislative measures too are on the anvil in order to buttress the pick-up in growth.
Bose also underscored the importance of bolstering the tax revenues by broadening the tax base. The Ministry is making effective usage of modern technology
in order to achieve this feat, he added. According to the Ministry’s estimate, around 12 lakh PAN card holders in the country do not file income tax returns; an anomaly which Mr Bose said the Department is in the process of rectifying. The setting up of Tax Administration Reform’s Commission (TARC) is another important step to increase compliance through movement towards a world
class tax system that reflects the best global practices, he further mentioned.
The revenue secretary also reiterated the government’s commitment to introduce the goods & services tax (GST) for which it is engaging with the States aggressively. He also touched upon the importance of increasing the service tax compliance given the quantum jump in the contribution of services sector to GDP over the years. The voluntary compliance scheme for the services sector is another step taken by the government to widen the tax base.
Some of the other issues which were discussed during the interactive session related to rise in tax on royalty/fees from 10% to 25%; acquiring and installing machinery in the same year in the context of investment allowance; tax on buyback of shares, inclusion of alcohol in GST, definition of SUVs in relation to increase in excise duty, issues related to CENVAT credit, etc.