ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Direct Tax Collections Touch a 15-year High

While the collections have increased, the sharp corporate tax cuts significantly dent the resource mobilisation potential.

Direct Tax Reform

The consultation paper of the Task Force on Direct Taxes has an evangelical flavour to it. Some of its suggestions for administrative simplification can be accepted without hesitation, but its other suggestions require more inputs before decisions can be made. It would be interesting to see the detailed computations that underlie the recommendations of the Task Force.

Task Force Recommendations on Direct Taxes

The Kelkar Task Force on direct taxes has gone much farther than its predecessors in respect of tax administration. However not all its recommendations on structural changes are "congruent with generally accepted principles of taxation", though it was the KTF's objective to make them so. In respect of both personal income tax and corporate profits tax there are recommendations that are not really in accord with international practices based on accepted tax theory.

Direct Tax Reform

The Consultation Paper on Direct Taxes makes a strong and cogent case for the autonomy of tax administration, for transforming it into a taxpayer service department and for the abolition of fiscal incentives. A critical review.

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