News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Service Tax »
 Tax saving options under section 80C: Features explained
 What is the last date to file income tax return?
 Documents needed for filing Income Tax Returns in India
 Who all need to file their tax returns
 Higher taxes on the rich, but low returns for the Union government
 What is Goods and Services Tax (GST)?
 Central Goods and Services Tax (Fourth Amendment) Rules, 2019a
 How to avoid TDS deduction on fixed deposit interest
 Cross-country offices of companies to now come under GST
 Key changes in ITR forms for AY2019-20 that you need to know
 Government likely to increase income tax exemption limit to Rs 3 lakh Budget 2019

GST will improve tax-to-GDP ratio
June, 27th 2016

Chief Economic Adviser Arvind Subramanian has said on Sunday that Goods and Services Tax (GST) will help improve tax-to-GDP ratio in the country, while giving buoyancy to the government's tax collection efforts.

He also termed the proposed tax system — along with strategic disinvestment and twin balance sheets — as the government's major pending agenda. Speaking at an international conference on Social Statistics in India, organised by Asian Development Research Institute (ADRI) as part of their Silver Jubilee celebrations in Patna, Subramanian said: "We need to catch up on tax to GDP front. I sincerely hope that GST would give some buoyancy to it."

Subramanian said while the country has left behind the licence-quota permit raj and opening up for foreign direct investment in greater number of sectors, what has come to afflict the economy is the "Exit problem". He meant that loss-making firms and entities have been finding it difficult to exit from the business and gave the example of the fertiliser sector. Calling this a major area of reforms, he said: "The inefficient firms are not even employment-intensive and so it's easy for them to shut down. There is a need to readjust and recalibrate exit," he added.

Subramanian also touched upon "Brexit" and termed it as a major shock in the world history after the Cold War. He said it was a setback for the international citizen, globalisation and that a great social experiment is now being reversed. As for its economic repercussions on India, he said the country had strong fundamentals to withstand the negative fallout.

He also called for an office of chief economic adviser in every state to generate ideas and policies.

The Chief Economic Adviser said India presented a picture of a highly Balkanised country with respect to power tariffs and tax rates. Showing data for power tariffs for agriculture and tax rates in the states, he said: "we should be one economic India".

Showing excitement about reforms in the garment sector, he said: "It is much more labour-intensive than sectors like auto and steel and has the potential to empower women by creating jobs for them." He also said this is one of the areas where shrinking share by the Chinese can be cornered by Indian firms.

While saying India had very few tax payers and that in as many as seven areas — kerosene, railway, electricity, LPG, gold, aviation and turbine fuel and small savings — "well-off", the top 40% of the population, were subsidised to the extent of Rs 76000 crore, he called for spending more to generate more.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2019 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Our Vision

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