Bring parallel economy into tax net: Kalam

Nagpur, June 16: President Dr A P J Abdul Kalam called for research to work out ways and means to bring the country's entire economy, including the 'parallel economy', within the tax net.

Speaking at a function as part of the silver jubilee celebrations of the National Academy of Direct Taxes (NADT) here, Dr Kalam said the research would enable the Ministry of Finance to make the necessary changes in its policy every year to bring the parallel economy into the tax net.

Referring to reports about the existence of the parallel economy, he said the research on the ways to bring the parallel economy into the tax net could be carried out in cooperation with renowned economists from academic institutions. Probationers from NADT could participate in the research, he added.

Dr Kalam said the probationers could also study judgements from direct tax tribunals and the courts to determine if there is a need to make the laws simpler or clearer so that the need for litigation was reduced.

Research could also be conducted to bring more transparency in the tax system, reduce the fear in the minds of the tax-payers, increase recovery amid a friendly environment, improve the economy, contain inflation and ways to put tax collections to maximum use for the development of the country, the President said.

Although India's Gross Domestic Product (GDP) is growing at 9 per cent per annum, economic growth has not fully reflected in the quality of life of a large number of people, especially of those in the rural areas, he said.

To improve the quality of life, efforts must be made to provide housing, drinking water, nutrition, sanitation, education, employment and healthcare, besides promoting the joint family system and righteousness, removing social inequalities and reducing corruption Dr Kalam said.

This would ensure a prosperous and strong India, he added.

Maharashtra Chief Minister Vilasrao Deshmukh was the chief guest at the function.

UNI