Asserting that the new dispensation is not a high-tax government, Finance Minister Arun Jaitley said today that lower taxes and duties were aimed at improving savings for investment and making manufacturing competitive to revive growth.
Replying to the discussion on Finance Bill, he also announced some minor concessions for mutual fund industry and giving discretion to CBDT on levy of penalty for late filing of tax returns.
Jaitley reiterated government's decision not to resort to retrospective tax amendments to create a new liability and promised to look into the controversial GAAR (General Anti tax Avoidance Rules).
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"Ours is not a high-tax government. High tax government will not encourage business and industrial activity in India. A high-tax government will never be able to create jobs.
"A high-tax government will never be able to create a low-cost manufacturing situation...Ultimately what do consumers want to buy. They want to buy products. They don't buy taxes," he said.
He was answering criticism from members who sought higher taxes for revenue mobilisation.
"We are interested in creating a situation where the sentiments in regard to Indian economy, which had been disturbed in the eyes of investors in comparison to the global economy, is revived," he said.
The Lok Sabha later passed the Finance Bill marking completion of the budgetary exercise for 2014-15 in the lower house.
Jaitley, who announced some minor modifications in the budget proposals, said that tax concessions provided by him were aimed at lowering the cost of manufacturing and boosting industrial activity.
