New Delhi, Apr 29 (KNN) Almost 50 per cent of the small firms to not pay taxes and the government is taking all steps to ensure that the small firms do not evade taxes, Minister of State for Finance Jayant Sinha informed Parliament today.

Sinha pointed that addressable tax payer population in the country is 4-6 crore according to the experts and 5.8 crore people come under the tax net.

“If there is any shortfall, then we have to look at the smaller firms,” he said adding that there are 50 per cent of smaller firms which should pay taxes and they are paying it and there are 50 per cent which are not paying taxes.

He said the government has taken "revolutionary steps" to ensure there is no tax evasion and steps have been taken to increase tax collection.

Things have improved as far as prevention of tax evasion is concerned, he said while replying to questions.

Referring to smaller firms, Sinha said 50 per cent of them do not pay taxes and the government is keeping a watch to ensure there is no evasion.

To ensure compliance, stringent action is being taken, he added.

The minister said there are 25 crore households in the country, out of which 18 crore are in the rural areas.

Out of the seven crore households in the urban areas, nearly half cannot pay tax and the total eligible households who come under the tax net are between four to six crore. (KNN Bureau)