Tax Budget – Tax and Taxes, Indian Interim Budget 2009
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Interim Tax Budget 2009. As ever tax is a central pre-occupation of everyone who reviews any Indian Budget, and the Tax Interim Budget is no exception.
Tax rates inevitably fall during times of economic crisis, as employment and wage levels drop.Therefore, the Indian Government has undertaken a comprehensive reform of the tax system, both the direct and the indirect tax system, with a view to improving its efficiency and equity.
Distortions within the tax structure have been reduced by expanding the tax base and moderating the tax rates. The personal income tax rates have been rationalized by increasing the threshold limit and adjusting the tax slabs to provide relief to taxpayers. Similarly, Customs Duty rates have been steadily reduced to eliminate the bias against the export sector and promote competition and efficiency in the manufacturing sector. The rates of Union Excise Duties and Service Tax have also been rationalized to enable eventual shift to the Goods and Services Tax on April 1, 2010. The Government also facilitated the introduction of the State level VAT in April 2005.
These structural changes were also supported by undertaking modernisation of the business processes of the tax administration through extensive use of information technology, viz., e-filing of returns, e-payment of taxes, issue of refunds through ECS and refund bankers, computer assisted selection of returns for scrutiny, establishing taxpayer information system and a computerised tax payment reporting system. These measures have enabled the tax administration to enhance its functional efficiency and provide better taxpayer service leading to increased compliance levels. To prevent movement of contraband goods across the country’s sea borders, the Government has sanctioned acquisition of 109 marine vessels for the Customs Department.
For the fiscal 2009-10, the Interim Budget Estimates forecast Gross Tax Revenue receipts at the existing rates of taxation are estimated at Rs.6,71,293 crore and Centre’s net tax revenue at Rs.5,00,096 crore.
Administrative Reforms
The Government set up the second Administrative Reforms Commission in August 2005 with a mandate to suggest measures to achieve a proactive, responsive, accountable, sustainable and efficient administration for the country at all levels of the government. The Commission has brought out number of reports with practical recommendations, providing a starting point for improving efficiency in the delivery of public services. The enactment of the Right to Information Act in 2005 at the Centre and in many States has bridged a critical gap in the public decision-making process, ushering in greater accountability of the public servants.
The Sixth Central Pay Commission submitted its recommendations in March, 2008. The Indian Government considered and improved upon the recommendations of the Sixth Central Pay Commission. This has benefited over 45 lakh Central Government employees including Defence Forces and Para Military forces and over 38 lakh pensioners. It is my hope that this will not only improve the quality of administration but will also help the economy by supporting demand.
India’s fiscal budget and how it relates to the 2009-10 budget here
The Interim Budget – India Interim Budget 2009
Indian Interim Budget 2009 – Background, Overview, Objectives And The Eleventh Five Year Plan
Revised Estimates, Indian Revised Budget Estimates 2008-2009, RE 2008-09
Indian Budget Estimates 2009-2010, BE 2009-2010, Indian Interim Budget
Tax Budget – Tax and Taxes, Indian Interim Budget 2009
Agriculture Budget – Indian Interim Budget 2009, Agricultural Sector, Rural Development Budget
Education Budget – Indian Interim Budget 2009, Education Sector
Social Sector Budget – Indian Interim Budget 2009, Social Sector
Financial Sector Budget – Financial Sector Reforms, Indian Interim Budget 2009
