Prime Minister Narendra Modi on Wednesday underscored his government’s tax reforms such as faceless appeals and dispute redressal mechanism to say India has moved from tax terrorism to tax transparency.
Speaking at the inauguration of an office-cum-residential complex of the Income Tax Appellate Tribunal (ITAT) at Cuttack, Modi said his government has attempted to bridge the trust deficit between the taxpayer and tax collector while also easing the rules and procedures.
Reduction in peak rate of corporate tax to 22 per cent from 30 per cent, going in for appeals only in case of a higher threshold of the disputed tax amount, removal of dividend distribution tax and quick refunds have brought transparency and simplified the tax structure, he said. “Tax terrorism was a common refrain during past governments. Earlier, people used to complaint about tax terrorism. We have left that behind and moved towards tax transparency.
“The shift from tax terrorism to tax transparency has been possible because the government is following the approach of ‘reform, perform and transform’,” Modi said. He further said the government has brought about reforms in rules, procedures and using technology to a big extent. “We are performing with clear intent and intention and also transforming the mindset of tax administration,” the Prime Minister added.
“Today income upto Rs 5 lakh is exempt from taxes and the benefit of this is available to the youth who fall in the lower middle class bracket. In this year’s Budget, we have provided the optional tax regime which is more simple and saves the taxpayer from unnecessary hassle and cost. “Also, to fast track growth and make India investment friendly, historic reduction has been brought about in corporate tax,” he emphasised.