Tax In India

By: EconomyWatch   Date: 30 June 2010

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Tax in India constitutes a major share in total revenue. Rising middle-income earning group of peoples in India has resulted faster rising income tax collections. In the same direction the Government of India has undertaken many steps for smooth collection of tax in India.

Various forms of taxes and necessary changes proposed in the coming budget 2007-08 are as follows:

Value Added Tax

Implementation of Value Added Tax in India has brought uniformity in the tax system in India to some extent. In the same direction the Government of India has stepped to make the flow of goods and services easier across the states. Some of the proposals for making the value added tax system better are as follows:

  • The Central Sales Tax should be reduced to 2%.
  • Clarity on entry tax policies
  • Fixation of upper limits and lower limits rates on various products

Fringe Benefit Tax

The case of Fringe Benefit Tax should allowed which is similar as the tax paid by employer on any perquisite given to employee. The case of Fringe Benefit Tax should be allowed like the taxes such as Excise duty, Stamp duty and Customs duty.

On Tax Rates

As to the present Indian tax system, a corporation tax is more than 40 percent. The tax burden in India is comparatively higher in the present case. The tax system should be made competitive for attracting more investments to the country.

 

Further Readings

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