NEW DELHI: Minister of State for Finance Jayant Sinha today said the comprehensive roadmap for phasing out corporate tax exemptions announced by the government is aimed at simplifying and streamlining exemptions and bring down tax rates.
Ultimately the goal is to make this revenue neutral so that we do not suffer in terms of our revenue collection, but ultimately we think this is going to help businesses because they will have a much simpler tax code and that will result in heightened economic activity, said Mr Sinha while inaugurating an International Technology Summit: Leveraging Emerging Digital Technologies for Sustainable Growth, organised by The Associated Chambers of Commerce and Industry of India (ASSOCHAM).
We want to make sure it is revenue neutral and that our fiscal deficit targets are not touched and we have to take that into account, that is going to be are objective function as we think through the roadmap, said Mr Sinha.
Our goal is to be able to simplify and make our tax code as predictable as possible, much of the litigation in many of the disputes that exist on the corporate side are because of exemptions and so our goal is to be able to simplify and streamline our exemptions on the one hand and bring down the tax rate on the other, he added.
The minister further said that Seventh Pay Commission’s recommendation of a hike in pay and allowances will not impact the government’s fiscal deficit targets.
We are confident that we will be able to stick to that fiscal consolidation roadmap even with the pay commission’s recommendation, said Mr Sinha.
The roadmap we have put together is taking into account our that time best estimate for what the impact of the pay commission will be, so that was taken into account when we had established the fiscal roadmap, he added. (UNI)
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