‘Budget points to non-intrusive tax regime’

The Union Budget proposals are aimed at making the business atmosphere congenial, said SK Misra, Director General of Income Tax, Karnataka and Goa.

Speaking at a seminar organised by Assocham here today, Misra said, “Tax proposals clearly point to a move towards non-adversarial and non-intrusive tax regime. This is being supplemented by deliberate efforts to make tax administrators more friendly towards the assesses.”

The provisions point to a shift towards a clear, stable and consistent tax regime, Misra said. Efforts are being made to allay the fears of international and domestic investors, he added.

Misra cited deferment of GAAR provisions by two years as another instance of the government’s desire to allow corporate sector sufficient time to get ready for new provisions. “Overall, the budget provisions will help improve business climate,” he explained.

Kamal Jyoti, Commissioner of Central Excise, said that budget proposals lay thrust on reform and performance. This, he said, would help enhance investment in economy, thereby facilitating inclusive growth.

Sanjay Pant, Commissioner of Customs, and Sandeep Prakash, Commissioner of Service Tax, also addressed the meet.

Earlier, S Babu, Assocham managing committee member, said the most important announcement in the budget was about appointment of an expert committee to examine the possibility of legislation where the need for multiple prior permissions will be replaced by a pre-existing regulatory mechanism.

Welcoming measures to curb black money, Babu expressed the hope that the new law proposed in this regard would not become a tool for harassment of tax payers. He also welcomed the announcement regarding progressive reduction in corporate tax rates coupled with removal of exemptions that will bring clarity and remove ambiguities in tax system.

In his address, Abdul Majeed, partner, Price Waterhouse & Coopers, said the biggest challenge before the economy was to kickstart growth that may create jobs and reduce income disparities while keeping inflation under control.

At the same time, the government was keen to expand the tax base. For this, he said, it was important that both revenue authorities and tax payers worked jointly.

While lauding announcement regarding comprehensive bankruptcy law, Majeed said that more important was announcement regarding procurement law which he hoped will help stem corruption engulfing government procurement.