| Terming India’s tax-GDP ratio low, the Federation of Indian Chambers of Commerce and Industry (Ficci) has urged the government to implement the recommendations of the Kelkar Committee, Parthasarthi Shome Committee and the Chelliah Committee to make tax administration more effective.
|
| |
| The tax-GDP ratio, 11.1 per cent in 2005-06 and 12.1 per cent in 2006-07, is still low compared with the ratio in Australia (24.1 per cent), Austria (21.0 per cent), Belgium (26.7 per cent), Denmark (30.1 per cent), Finland (23.0 per cent) and France (22.6 per cent), Ficci has said.
|
| |
| For widening the tax base and to bring 15 crore assessees in the tax net against 3.5 crore now, the chamber has suggested that all services barring the basic essentials and the public utilities be brought under the purview of service tax.
|
| |
| It also suggested agriculture incomes beyond Rs 5 lakh be taxed at a flat rate of 15 per cent and the tax slab for individuals be restructured with a maximum tax rate of 30 per cent applicable on incomes over Rs 10 lakh.
|
| |
| Asking that corporate India’s tax burden at 40 per cent be reduced, the chamber has also made a case for reviewing fringe benefit tax to allow deduction on genuine business expenditure, and for non-imposition of surcharge, education cess or levy in any other form.
|
| |
| Establishing a fast track dispute resolution mechanism and a tax ombudsman scheme, Ficci has reiterated the need to make income tax officers IT-friendly.
|
| |
| It has also suggested that export schemes be made long-term and a unified comprehensive drawback scheme be drawn up to neutralise each and every incidence of indirect tax and local levies factored into the final export product. |
| |
|
| |
Content Guide
