Govt needs to implement fair tax regulatory system
Updated: Jun 02, 2014 01:00:00pm
New Delhi, Jun 2 (KNN) A non-adversarial, conducive and fair tax regulatory environment is needed to support the forward looking development and delivery-oriented agenda of the new government, said Federation of Indian Chambers of Commerce and Industry (FICCI).
“We must show that India values and welcomes capital, and supports it by clear and credible policies. Enterprise and administration must both stand assured that decisions and actions in good faith will be respected and protected", said FICCI President Sidharth Birla in a discussion with the new Finance Minister Arun Jaitley yesterday.
In a list of pre-budget suggestions, the industry body called on the government to declare a policy that retrospective action shall not be resorted to, except in rarest cases.
"The Government could ideally declare as policy that retrospective action shall not be resorted to, save in rarest of cases, but never for creating a fresh onus or liability for a previous period. In fairness, retrospective change if needed must invariably favour the taxpayer,” Birla said.
Citing concerns related to taxation of capital, he said provisions which effectively deem portions of capital to be in the nature of income are serious deterrents to genuine transactions, while keeping the door open for aberrant behaviour.
“Fishing expeditions harm business atmosphere and reputations. Rapid disposal of cases and enquiries is essential, unless there is clear evidence of wrongdoing" he said.
FICCI suggested that changes can be examined in laws to aggressively widen tax base, simplify laws, rationalise exemptions, conducive tax environment with litigation moderated and only as exception.
It also made other key suggestions like implementation of a comprehensive Goods and Services Tax (GST) in 2015, review of relevance of a Direct Tax Code (DTC), review of GAAR, rebated income tax periods for small start-up businesses, possible steps on illegal assets abroad through tax net and introduction of START (Sartup Rebated Tax) in line with other Asian countries. (KNN/ST)
“We must show that India values and welcomes capital, and supports it by clear and credible policies. Enterprise and administration must both stand assured that decisions and actions in good faith will be respected and protected", said FICCI President Sidharth Birla in a discussion with the new Finance Minister Arun Jaitley yesterday.
In a list of pre-budget suggestions, the industry body called on the government to declare a policy that retrospective action shall not be resorted to, except in rarest cases.
"The Government could ideally declare as policy that retrospective action shall not be resorted to, save in rarest of cases, but never for creating a fresh onus or liability for a previous period. In fairness, retrospective change if needed must invariably favour the taxpayer,” Birla said.
Citing concerns related to taxation of capital, he said provisions which effectively deem portions of capital to be in the nature of income are serious deterrents to genuine transactions, while keeping the door open for aberrant behaviour.
“Fishing expeditions harm business atmosphere and reputations. Rapid disposal of cases and enquiries is essential, unless there is clear evidence of wrongdoing" he said.
FICCI suggested that changes can be examined in laws to aggressively widen tax base, simplify laws, rationalise exemptions, conducive tax environment with litigation moderated and only as exception.
It also made other key suggestions like implementation of a comprehensive Goods and Services Tax (GST) in 2015, review of relevance of a Direct Tax Code (DTC), review of GAAR, rebated income tax periods for small start-up businesses, possible steps on illegal assets abroad through tax net and introduction of START (Sartup Rebated Tax) in line with other Asian countries. (KNN/ST)
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