FM Arun Jaitley bats for low taxes

Jaitley also said that voluntary tax compliance has to increase in India. Extraordinary high taxation rates in the past have led to higher tax evasion

FM Arun Jaitley bats for low taxes

Ahead of the likely budget announcement on February 1, Finance Minister Arun Jaitley on Monday said that India now needs to move to a lower level of taxation to be globally competitive, Times of India reported.

"What you need is lower level of taxation, to provide services more competitive in nature. Competition is not domestic, it is global. This is one important change you will witness while you will be in service," Jaitley said. We have seen post-1991 the entire course of economy altering itself. What you need is a broader base of economy, for which you need a lower level of taxation," he added.


He was addressing the officers at inauguration of professional training of 68th batch of Internal Revenue Service (IRS) (C&CE) Officers at National Academy of Customs Excise and Narcotics.

The statement came a day after Prime Minister Narendra Modi reportedly dropped a hint on increasing taxes on capital markets and the need for all sections, including market players, to contribute to the national exchequer.

Jaitley also said that voluntary tax compliance has to increase in India. Extraordinary high taxation rates in the past have led to higher tax evasion. According to Jaitley, “extraordinarily high taxation rates in the past” have encouraged people to evade taxes. “What you need is lower level of taxation, to provide services more competitive in nature,” he said. “Competition is not domestic, it is global. This is one important change you will witness while you will be in service.”
Jaitley will present the Budget for 2017-18 to an advanced date of  February 1