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: Central Excise rule to resale the machines to a new company :: ARTICLES ON INPUT TAX CREDIT IN VAT :: TAX RATES - GOODS TAXABLE @ 4% :: list of goods taxed at 4% :: VAT Audit :: ACCOUNTING STANDARDS :: form 3cd :: articles on VAT and GST in India :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: VAT RATES :: due date for vat payment :: empanelment :: TDS :: ACCOUNTING STANDARD :: cpt
 
 
« News Headlines »
 GST Council fails to break deadlock over indirect tax regime, next meet on Dec 11 and 12 to hammer out differences
 Invoking Writ Jurisdiction For Income Tax Matters
 How to file income-tax returns online
 How Income Tax Returns Are Scrutinised
 All About New Income Disclosure Scheme to make Demonetisation successful
 Your deposit may draw income tax notice
 Accepting payment under IDS 2016
 New disclosure scheme could see 50% tax and 4-year limit on cash use for unaccounted deposits
 Pay 50% tax on unaccounted deposits, or 85% if caught, says Modi government
 Deadline to pay property tax in old currency extended
 Cabinet clears amendments to Income Tax Act

Economists not for cut in direct tax rates
January, 10th 2008
Chidambaram told to use revenues to rationalise indirect taxes

 

Focus on infrastructure: (From right) The Union Finance Minister, Mr P. Chidambaram; the Ministers of State, Mr S.S. Palanimanickam and Mr Pawan Kumar Bansal; and the Finance Secretary, Mr D.Subbarao, at the pre-Budget meeting with economists at North Block 

Economists have urged the Finance Minister, Mr P. Chidambaram, to retain direct tax rates at current level, stating that it may not be prudent to cut rates when potential fiscal pressures such as Pay Commission and certain off-budget liabilities would surface to the centre stage in the next couple of years.

They want the Government to use the current tax revenue buoyancy to improve infrastructure expenditure and rationalise indirect taxes, especially those relating to the oil sector, given that tax composition in oil price was as high as 57 per cent.

There was a suggestion that given the somewhat different and turbulent global environment that the economy faces and the number of fiscal stress points like Pay Commission, oil bonds in the offing, it may not be prudent to take this (current tax revenue buoyancy) as a permanent change in tax-GDP ratio. Some of them said it would not be prudent to cut direct tax rates, Mr Subir Gokaran, Chief Economist, Asia Pacific, Standard and Poors, told newspersons after the pre-budget meeting that the Finance Minister had with economists at North Block here today.

ICRIER Chief Executive, Mr Rajiv Kumar, said that reduction in indirect taxes on oil products would have neutral impact on consumer and also give more relief to oil industry. He added that many economists had submitted to the Finance Minister at the meeting that there was no evidence to show that further reduction of tax rates would lead to greater revenues.

While noting that rupee appreciation was a concern for the economy, Mr Kumar said that a slew of suggestions were made in this context.

We have told the Finance Minister that he should take a pause on customs duty in this budget as rupee appreciation has already helped in reducing the value of imports.

A Tobin tax like levy has also been suggested on inflows into real estate and equities to reduce the returns on inflows into such areas, he said.

The economists have urged the Government to increase the usage of market stabilisation scheme (MSS) bonds as the cost (of such bonds) was not very high.

It was also pointed out that the Finance Ministry needs to take a good look at excise duties and that more buoyancy could be achieved in this area.

On subsidies, Mr Kumar said that the Government was requested to reduce subsidies or at least make them more efficient through use of vouchers.

On research and development (R&D), it has been suggested that the Government must look at providing direct subsidy for R&D efforts of companies instead of providing allowances.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Careers

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