My wish is that the congress party which has got a big win in the recent election must use its majority and show courage and bring about efficiency in running the Government and the economy, as a whole. For this, it is suggested that the number of type of taxes should be reduced, so that compliance becomes easier. By reducing number of types of taxes the corporate work decreases and thus will decrease the cost of doing business.
Central sales tax should be completely abolished, since VAT has come in and the states have agreed to change the sales tax to VAT also there has been a commitment to reduce 1% each year. Last budget decrease has not taken place.
Fringe benefit tax to be abolished because it has created a new department and new set of norms and unnecessarily increased the cost of administration. There are a number of prerequisites which are not tax deductible. If there is need to review the prerequisites, it should be done and if one is looking at fringe benefit tax as a revenue the government may increase the corporate tax.
The integrated food law was introduced to reduce the number of food regulations to one body, which will set and control the food standards. Similarly an approach should be there to integrate the various taxes, so that it becomes efficient for the companies and the government to administer and collect the necessary revenue without hardships.
There should be some time bar on tax litigation. There are many tax litigations which are going on for last 15-20 years and longer and the culprit seems to be the government because no body wants to take decisions which may be favourable to the government and thus no unnecessary appeals are made by the government officials who are afraid to take decisions. This will ease up the congestions in the courts and justice will be rendered in time.
To sum up basically, effort should made to reduce the cost of doing business and the cost of collecting taxes.
Regards,
Ramesh Chauhan
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