3 hrs ago
Sitharaman Calls for Data-Backed Tax Reforms Ahead of Budget
Finance Minister Nirmala Sitharaman asked businesses to suggest better tax rules, not just ask for lower taxes.
She said companies often request reduced rates, exemptions or special concessions.
She wants them to use facts and numbers when making proposals.
They should explain how many people a rule affects and how much time or money it costs.
They should also say how changes could affect government revenue.
Businesses should point out who benefits and whether other taxpayers could be affected.
Sitharaman said some old rules may need to be removed even if businesses currently benefit from them.
She wants India to think about its tax system for the next 20 years, not only the next budget.
Pre-budget consultations are expected to begin next month.
Nirmala Sitharaman urged industry to propose structural tax reforms instead of mainly seeking cuts, exemptions or concessions.
She said tax proposals should include evidence on affected taxpayers, compliance costs, revenue effects and possible alternatives.
Sitharaman asked industry to identify outdated provisions, including those that currently benefit the businesses making submissions.
She said proposals should explain effects on the tax base, tax administration, other taxpayers and unintended consequences.
Her remarks came in Bengaluru before pre-budget consultations expected next month, amid global uncertainty and food and fuel price pressures.
- Who
- Finance Minister Nirmala Sitharaman addressed industry associations and tax professionals.
- What
- She urged them to submit data-backed proposals for structural tax reforms rather than mainly requesting tax cuts, exemptions and concessions.
- Where
- At a conference of the International Tax Research and Analysis Foundation in Bengaluru.
- When
- She made the remarks on Wednesday; pre-budget consultations are expected to begin next month.
- Why
- She said stronger evidence and a broader focus are needed to assess compliance costs, revenue effects, tax administration and the long-term design of India’s tax system.
Key facts
- Speaker
- Finance Minister Nirmala Sitharaman
- Event
- International Tax Research and Analysis Foundation conference
- Location
- Bengaluru
- Expected consultations
- Pre-budget consultations are expected to begin next month.
- Requested evidence
- Proposals should quantify affected taxpayers, compliance time or costs, and revenue implications.
- Long-term focus
- Sitharaman called for debate about the tax system India should have over the next two decades.
- Policy context
- The government is preparing the next budget amid global uncertainties and pressure from food and fuel prices.
Quotes
Nirmala Sitharaman
India’s finance minister
“What we see much less often is a submission that says, for instance, here is a provision that no longer serves the tax system and ought to be removed even though we presently benefit from it.”
telegraphindia.com
“If a provision is set to impose excess compliance burden, tell us how many taxpayers it affects, how much time or cost it imposes and what an alternative would mean for revenue.”
telegraphindia.com
Sources
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