Implementation of new tax regimes -- the Direct Taxes Code (DTC) and Goods and Services Tax (GST) -- would simplify tax laws in the country and help public sector enterprises compete globally, Standing Conference of Public Enterprises (SCOPE) Director General UD Choubey said today.
"The DTC and GST will result in simplification of laws and better compliance and will be better for government to get larger revenue. To compete on global basis, the PSEs need financial reforms that also includes the taxation reforms," Choubey said at a conference here.
He said the tax structure in India had created a lot of complexities as each state had different norms to tax particularly on declared or undeclared goods and different ways of taxing with the changing times.
He further said PSEs were the largest entities to contribute maximum taxes to the government exchequer.
"PSEs are contributing approximately Rs, 1,40,000 crore in the form of sales tax, excise, customs duty, dividend, etc on a turnover of over Rs 12 lakh crore," he added.
The DTC Bill proposes to replace the 50-year-old Income Tax Act, while the introduction of GST would subsume central and state taxes like excise, customs, service tax, sales tax and VAT.
A Constitution Amendment Bill has already been introduced in Lok Sabha for roll out of GST in the Budget session.
