Following are some of the tax Reforms introduced in India from to Thus these taxes may be integrated into a single tax system. Although Indian tax structure as a whole is considered as a progressive one and the Indirect Taxation Enquiry Committee also concluded that indirect taxation, in totality is progressive but if we look deep into the structure then it is observed that the same violates the cannon of equity.
Business firms cannot take long-term decisions if there are year-to- year changes in the tax system of the country. Accordingly, the share of direct taxes in the gross revenue of the Centre jumped from Predominance of indirect taxes should be streamlined and higher reliance should be given on direct taxes.
Reforms in Indirect Taxes: Again the share of direct taxes in the gross tax revenue of the Centre rose from about 19 per cent in to an estimated 29 per cent in Kaldor described the Indian tax system as inefficient and inequitable.
Import duties which rose to more than p. The corresponding percentages in U. There is no surcharge on the foreign companies.
In order to make a distinction between productive and non-productive wealth for levying wealth tax, productive assets like shares, securities, bonds etc. Sincea number of provisions were introduced to widen the tax base. The transition from plan to market required the substitution of administered prices with market determined prices, the replacement of physical controls with financial controls, and the substitution of public enterprise profits with tax revenues.
The report suggested that reforms in this respect should be gradual. The initial exemption limit for the levy of income tax was raised from Rs 22, in to Rs 50, in Suggestions for Improving Indian Tax Structure: Corporate tax rates have been reduced and simplified over the past few years.
The rates of corporate income tax, which were Thus, there has been a progress in fiscal correction. At least types of services are subject to service tax as against 3 in In this essay we will discuss about Indian Tax Structure. The report also stresses the need of introducing stability and rationality in the tax structure.
Reforms and Measures of Indian Tax Structure: Tax Measures and Reforms, Over the past five years, a number of structural changes covering both direct and indirect taxes were undertaken. In respect of excise duties, the report recommended switching over to ad-valorem rates on a number of particles in order to ensure buoyancy in revenue as a result of increased prices.
Tax Measures and Reforms to Adding to the complexity, businesses with pan-India operations face filing over 1, digital returns a year. The 95 budget continued to rely on all these principles in respect of direct taxes and undertaken major reform of indirect taxation system, which continues to account for over 71 per cent of the total tax revenue of the centre.
The Cheiliah Committee recommended the following measures in respect of particular taxes:NEW DELHI (Reuters) - India early on Saturday introduced its biggest tax reform in the 70 years since independence from British colonial rule. The Goods and Services Tax (GST) replaces more than a.
The final section pulls together the various suggestions for consolidation of tax reforms in India. Academic Commons.
Home. Tax System Reform in India the fiscal crisis of provided the first major window of opportunity for a serious rethink, followed by action.Tax System Reform in India, Columbia University Academic Commons.
Trends and Issues in Tax Policy and Reform in India T (). 56 INDIA POLICY FORUM, ing the economic impact of tax reforms have been conducted in India Trends and Issues in Tax Policy and Reform in India. revenue since when systematic reforms were first set in motion. The analysis shows that despite in itiating systematic reforms, the.
Essay on Indian Tax Structure. Article shared by: Overall, tax reforms since July have helped in correcting structural imbalances in the entire tax system, which by and large engender inefficiencies and distortions. Overall, tax reforms in India since July have helped in correcting the imbalance in the structure of revenue.
Economic Reforms in India since 1. by Montek S. Ahluwalia*India was a latecomer to economic reforms, embarking on the process in earnest only in, in the wake of an exceptionally severe balance of payments crisis.Download