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Simplify personal, corporate tax policies
February, 28th 2008

Both the personal and corporate tax policies and rates should be simple. At present, both individuals and corporates are eligible for certain incentives and that makes the tax regime complex and so consultants step in. The rates should be reduced and incentives should be abolished. It may appear that incentivisation of tax system encourages certain business activity but ultimately the benefit from such an arrangement is much lesser than the cost. Further the tax administra tion for the Government also becomes difficult.

K. V. Rao, Assistant General Manager (Retired), State Bank of India.

 
 
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