News Update

 
Simplification of tax regime to increase compliance: FM

By TIOL News Service

NEW DELHI, APR 28, 2017: NO one can contest the benefit of reduced taxation for the consumer; ‘Profit is not a bad word, unjust enrichment is,' said Mr Arun Jaitley, Minister of Finance, Corporate Affairs and Defence. He was speaking at the Annual Session 2017 of the Confederation of Indian Industry (CII) with the theme ‘Future of Globalisation: Can India Lead', at New Delhi today.  

GST, a path-breaking reform, is closer to implementation as the rules and regulations are in place and the formula for commodity based taxation is known, added the Minister. The government has, over the last few years, announced significant reforms such as effecting simplification of procedures and encouraging ease of doing business, dismantling of Foreign Investment Promotion Board (FIPB), reducing government discretion, and ensuring faster decision-making, among others which has resulted in further opening up of the economy. Similarly, the simplification of direct and indirect taxation is aimed at making India a tax compliant society, stressed the Minister. The strong political consensus on reforms is a further boost, he stated.  

According to Mr Jaitley, India's inherent strengths -a large domestic market, a rich reservoir of human capital, steadfast commitment to reforms etc- can help the country to emerge as an attractive business destination. While our capability to deliver on services to the world is without question, this should be extended to improve our manufacturing capabilities as well.  In this context, the government is committed to ensuring that India emerges as a hub of global manufacturing and for sectors such as defence, the response from both domestic and foreign investors is encouraging, he observed. Further, augmenting investment in infrastructure and an identified rural focus would emerge as the primary growth drivers of the economy, he said.  

The liberalization process has created an aspirational India. The switch towards competitive federalism has enhanced aspirations at the state level leading to greater competition between states for attracting investment, stated Mr Jaitley. CII must contribute its very best in improving India's model for manufacturing, he requested.

Articulating the vision of a new India, Mr Jaitley said that while the globalization process is in the state of flux the world over with ongoing debates over its perceived challenges and advantages, we have no doubt about the benefits of barrier-free interaction with the world.  

Dr Naushad Forbes, President, CII, said that no other country is better placed than India to provide the inclusion, the openness and the liberal resilience that would lead to global leadership. He was also in favour of continuing with openness in trade, imports and immigration as world talent seeks to make the country our home.  He said that CII has called for four rates in GST, removal of state registration processes, use of invoice value as sole basis for valuations and removal of non-profiteering clauses. We have argued that industry should not seek incentives and concessions, he stressed.

Mr Rakesh Bharti Mittal, Vice President, CII, introduced the CII Report on Ethics in Real Estate as a measure to strengthen the real estate sector in alignment with Real Estate (Regulation and Development) Act 2016.

The CII Centre for Arbitration & Mediation was launched electronically by the Finance Minister during the event. The CII codes for ethics in Healthcare and Real Estate were released by the Finance Minister during the inaugural session. 


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