Govt. promises stable tax regime

Govt. promises stable tax regimeUnion Finance Minister P Chidambaram has claimed that the government would ensure a stable tax regime that would be in the interest of taxpayers as well as tax collectors.

Speaking at a consultative committee attached to the finance ministry, Mr. Chidambaram said that the government was committed to ensure best services to taxpayers for better tax compliance and revenue growth.

The Finance minister said, "Our focus is always to have a reasonably stable tax regime, which is in the interest of both the taxpayers as well as tax collectors."

Taxpayers have long been blaming the government for a series of flip flops in the tax collection system.

Mr. Chidambaram also stressed on the need for strengthening of the tax information system for better tax collection. He pointed out that around 35 million Indians file income-tax returns but just 1.5 million have revealed income of Rs 10 lakh and above, which was surely not realistic.

The Finance minister also said that there was a need to encourage more taxpayers to file returns through electronic mode as that would accelerate tax processing and refund process. Currently, nearly half of taxpayers are using electronic mode to file returns.