Centre to implement direct taxes code with suitable amendments: Pranab

Finance Minister Pranab Mukherjee today said the Centre was committed to implementing Direct Taxes Code with suitable amendments in the interest of the economy.

“On the direct tax side, the government is deliberating on the proposal to introduce Goods and Services Tax (GST) to ensure uniform tax rates and simple tax procedure,” Mukherjee said addressing senior officers of Customs, Central Excise, Service Tax Department and Income-Tax Department here.

Mukherjee also emphasised that the introduction of the direct taxes code and GST would also be in the best interest of both the departments.

He had last week said the proposed code would address the issues like Minimum Alternate Tax (MAT) on gross assets, shift to new method of taxation on savings, exemption on home loans and taxation of foreign companies.

The code proposes to tax all saving schemes at the time of withdrawal by the subscriber, against the current practice of exempting withdrawals of schemes like Employees Provident Fund, General Provident Fund and Public Provident Fund.

Meanwhile, lauding the performance of both the wings of the Revenue Department, particularly in the last five years, Mukherjee asked the officers to discharge their responsibilities to improve delivery standards.

In respect of direct tax collection, the West Bengal region has achieved a budget collection of Rs 10,578 crore under corporate and personal income tax during April-November 2009, officials said.

It was a growth rate of 8.6 per cent over the same period last year, which exceeded the all-India growth rate of 8.20 per cent, they added.

Initiatives like Aaykar Seva Kendra under ‘Sevottam Scheme’ is already in place for the benefit of salaried tax payers at Bamboo Villa here, which would be extended to I-T office at EM Bypass and two offices in suburb at Durgapur and Chinsurah shortly.

However, the indirect tax collection from Kolkata customs zone till November 2009 was Rs 3,166 crore, 19.17 per cent less than the revenue collection for the same period last year, against national shortfall of about 21 per cent, they said.

The central excise collection in Kolkata zone till November 2009 was Rs 3,278 crore, about 32 per cent less than the revenue collection during the same period last year, despite the fiscal stimulus introduced by way of duty rate reduction to the tune of 42 per cent, they said.