Govt to remove exemptions on taxes, in stages

New Delhi, Mar 20 (UNI) Finance Minister P Chidamabaram today said exemptions on taxes must be removed over a period of time.

Citing the recommendations of the Kelkar committee in this regard, he said ''we legislate tax rates on the one hand and grant exemption on the other.'' Replying to debate on the Finance Bill for 2006-07 in the Lok Sabha, Mr Chidamabaram said ''the situation now is such that tax law and tax exemptions are more or less permanent.'' In this context, he said ''behind every tax exemption, there is a set of people. They will make a hue and cry if you touch them.'' Mr Chidambaram said there was a demand for income tax exemption to anonymous contribution.

''It is not acceptable to give the benefit of IT exemption to anonymous contribution to educational and charitable institutions.'' However, he accepted the sentiments of the members to exempt anonymous contribution to religious institutions.

UNI SH MSJ GC1613