Tax reforms will be widened and deepened

New Delhi, July 3 (UNI) Minister of State for Finance S S Palanimanickam today said the government will continue with the tax reform process and attributed the buoyancy in revenues to efforts in this regard.

"It has been a long journey for tax reforms in India. They have been fairly broad in their sweep covering all taxes levied and collected by the Centre, namely, Central Excise, service tax, customs, corporate tax policy and administration issues," Mr Palanimanickam said delivering the valedictory address at the two-day International Tax Conference here. The event was organsied by the Asian Development Bank.

"Infact, in the realm of commodity taxation, they have even touched upon taxes levied and collected by the States," he said.

Mr Palanimanickam said apart from their expanse, the depth of India's tax reforms has also been quite remarkable. They have been evenly poised in addressing tax policy and administration issues.

"They have been evenly poised in addressing tax policy and administration issues. The broad thrust of policy changes has been to simplify and moderate the rate structure, rationalise exemptions and remove anomalies. It has also been their concern to expand their tax base so that the tax burden is shared more evenly and equitably and the level of voluntary compliance improves. On the administration side, the cornerstone has been procedural simplification," he said.

The Minister said in the era of globalisation, it would be naive to even imagine, far less claim, that these reforms have been entirely homegrown or are an exclusive product of Indian genious.

"While they have an Indian flavour, they have been inspired by various success stories all over the world. It would be equally naive to presume that they would endure and succeed in the true sense unless there is wholehearted conviction among tax officials, who provide flesh and blood to policy that they needed," Mr Palanimanickam said.

UNI