Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: list of goods taxed at 4% :: due date for vat payment :: ACCOUNTING STANDARDS :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: Central Excise rule to resale the machines to a new company :: ACCOUNTING STANDARD :: TDS :: ARTICLES ON INPUT TAX CREDIT IN VAT :: articles on VAT and GST in India :: VAT RATES :: cpt :: empanelment :: VAT Audit :: form 3cd :: TAX RATES - GOODS TAXABLE @ 4%
 
 
News Headlines »
 Did you know? The tax exemption on your HRA
 Income Tax Department expands list of deposits, transactions under scrutiny
  Income-tax Act, 1961 read with Rule 114E of Income-tax Rules, 1962
 Master Directions on Access Criteria for Payment Systems
 RBI-Scheduled Bank's Statement of Position in India as on Friday, January 06, 2017 (Revised)
 3 Big Mistakes To Avoid This Tax Season
 The Top 5 Tax Stories Of 2017
 Are multiple service tax rates in the offing?
 All you need to know about claiming tax break on HRA
 How much income tax you should pay on investments in gold?
  Best ways to save tax in 2017

Chidambaram sees need to prune tax incentives
November, 11th 2006
To improve tax to GDP ratio


Tax incentives need to be pruned to achieve the targeted ratio as also to meet the target set by the FRBM Act.

The Finance Minister, Mr P. Chidambaram, has stressed the need to prune tax incentives to meet fiscal responsibility and budget management (FRBM) targets and increase tax to gross domestic product (GDP) ratio.

He was addressing the meeting of the consultative committee attached to the Finance Ministry here on Friday.

Mr Chidambaram highlighted that every tax concession is introduced with a specific purpose. He, however, felt that such concessions needed to be reviewed on a periodical basis with a goal to improve the fairness, transparency and efficiency of the tax system, meet the priorities of the government and eliminate inefficient and inappropriate tax expenditures.

The Finance Minister said that in order to achieve an equitable tax structure based on moderate rates and to generate adequate resources to fund spending on social and physical infrastructure, a close, hard look at the present system of exemptions in favour of particular sections of taxpayers is absolutely essential.

He pointed out that the country's tax to GDP ratio is one of the lowest in the world. Central Tax to GDP ratio, measured using central gross taxes, peaked at 10.6 per cent in 1987-88, and dropped sharply to 8.3 per cent in 1998-99. It has risen to 10.5 per cent in 2005-06; however, it is still low and needs to be improved.

The Draft Approach Paper to the 11th Five Year Plan assumes tax to GDP ratio of 13 per cent by 2011-12. As the opportunities for raising additional resources through new taxes or higher tax rates may be limited, tax incentives, therefore, need to be pruned to achieve the targeted ratio as also to meet the target set by the FRBM Act for elimination of revenue deficit.

This will help in increasing the tax base substantially and would also enable the Government to moderate the tax rates significantly and facilitate movement towards an integrated Goods and Services Tax by 2010.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Application Management Solutions Application Management System Application Management Software System Application Management Development Application Management Software Development

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions