Mr Sumit Bose, Revenue Secretary, Ministry of Finance, re-iterated the ministry’s commitment in bringing about efficiency in tax administration and establishing an industry-friendly tax structure. The way forward in the reform of the tax regime was to streamline the tax administration while following a consultative and collaborative approach with the various stakeholders, he said, while addressing the gathering at the 1st Global Tax Summit, organized by Confederation of Indian Industry at Taj Place, New Delhi today.
Mentioning the various initiatives taken by the Government, RBI and the Ministry of Finance in the last one and a half years to help the economy navigate through the present difficult situation, Mr Bose expressed his optimism in India’s robust growth story going forward.
Talking about the recent developments in the country in the area of International Taxation and the recent steps taken by the Ministry of Finance to address the concerns of the investor community, Mr Bose observed that following a consultative and collaborative approach, involving suggestions of various stakeholders has a significant importance in developing a robust, efficient and industry friendly tax system.
Highlighting importance of Base Erosion and Profit Shifting (BEPS) for India, the Revenue Secretary stated that “base erosion” remains a key concern for developing countries. He added that “residence” based taxation is under strain and is no longer an efficient method for just and fair allocation of profits. He specifically referred to ‘digital economy’ issues which are quite relevant in Indian context.
While appreciating the recent steps taken by the government to revive the investors’ confidence, Mr Rajiv Memani Chairman, National Committee on Indirect Taxes/GST, CII said that these steps will have a far-reaching consequence on the flow of investments into the country. On GST Mr Memani urged the government not to compromise with the GST design and thanked the Government on having approached an open and consultative approach in taking this reform forward.
Highlighting the importance of the clarity and stability in the tax regime for inspiring investors’ confidence, Dr Sudha Sharma Chairperson, Central Board of Direct Taxes, Ministry of Finance elucidated the various steps taken by the ministry in establishing a non-intrusive, non-interfering and assessee friendly tax system.
Dr Sudha Sharma assured the industry present at the conference that all concerns would be addressed in terms of disputes that might appear because of the tax structure or the interpretation of the tax structure and requested the industry to respond with the same spirit in paying the taxes and supporting the growth and development of the country.
In his concluding remarks, Mr R.K Agarwal, Chairman, Direct Tax Committee, CII urged that more steps be taken to engender investor confidence through tax reform and bring back an environment which is conducive to business.
Earlier, in his welcome remarks, Mr Chandrajit Banerjee, Director General, CII said that the industry is appreciative of the consultative approach adopted by the Ministry of Finance in the evolution of the tax system in India. However, he pointed out that if revenue collection becomes the single point focus then it might not be conducive for creating an enabling business environment.
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