Double taxpayer base to 100 mn, PM tells taxmen

Double taxpayer base to 100 mn, PM tells taxmen: Officers asked to build 'bridge of confidence' with taxpayers...
 RAPID action needed
On the same day the BJP’s new face in the Rajya Sabha, Dr Subramanian Swamy has given a clarion call to abolish income tax(as the money that flows in is not much, according to him!), with a view to improve India’s growth rate to 10 per cent. As PM Modi is known for doing his homework regularly for decades and Swamy is known for
off-the-cuff observations, for the present, PM’s wishes will be respected.
Expanding tax base and ensuring prevention of leakages are crucial for the country’s fiscal management. Agriculture need not remain a holy cow and beyond some threshold level, agricultural income also should be taxed, may be at differential rates.
GOI could, if these suggestions do not come up at the Rajaswa Gyan Sangam, consider the following measures to improve taxpayer base and make tax inflow increase:
Make ground level tax officials work with Local Self Government Bodies to identify potential taxpayer families.
ii)              GOI could commit a share from incremental tax collection from the command area of Corporations, Municipalities, Panchayats for economic development of the respective geographic area. This should be in addition to the share of central taxes that will be ploughed back through state governments in the normal course.
iii)       Human involvement is important. The mechanical issue of notices to those who own vehicles or travelled abroad has not fetched the desired results so far.
iv)            There should be clarity in incentives for honestly paying tax and disincentives for hiding real income.
v)      GOI could consider issue of a different, identifiable PAN Card for those individual taxpayers who have paid their taxes properly during the previous five years.

M G Warrier, Mumbai


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