For more tax revenue

As a result of the upgrade of India’s sovereign rating to Baa2 by global rating agency Moody’s, the indices of stock exchanges have risen which indicate that investors are confident of the Indian economy. 

At a time when the nation is poised for growth, the need for increased private investment is essential and the upgrade in the rating will pave the way for inflow of more capital. However, to accelerate the flow of capital and to sustain the confidence of investors, the government should focus on speedy execution of pending reforms and also ensure that the economy is getting the intended fruits as envisaged.

The enforcement of the Insolvency and Bankruptcy Code (IBC), the proposed re-capitalisation of state-owned banks, active involvement of the banking regulator to push banks for optimally utilising the IBC for rapid recovery of non-performing assets, roll-out of goods and services tax (GST), and the follow-up measures of the income tax department to unearth black money are ongoing. Yet results aren’t encouraging. The bad loan portfolio of the state-owned banks are still ballooning and it is hampering the recycling of the scarce resources, thus adversely impacting the credit expansion and investment. The GST needs more clarity and ease of implementation. The parties coming under its ambit are facing difficulties and as such the desired results aren’t forthcoming. Notwithstanding the fact that taxation authorities are after evaders to curb black money and expand the taxpayer base, more steps are needed to raise tax revenue.

VSK Pillai Kottayam

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