Simplifying and eliminate corporate taxes as well as cleaning up of legacy issues will continue going forward, Chief Economic Adviser Arvind Subramanian said.
Chief Economic Adviser Arvind Subramanian on Wednesday said the spate of reforms in direct and indirect taxes will help India transform into an efficient and clean system from a nation that practised “tax terrorism”.
Simplifying and eliminate corporate taxes as well as cleaning up of legacy issues will continue going forward, he added.
“We can really change the image of the country which was until recently practicingtax terrorism to one which really has a clean, efficient, modern broad-based tax system for the future and that could be one of the major reforms going forward,” he said at interaction of industry with the Finance Minister here.
“Goods and Services Tax (GST) is a game changing reform,” he said.
Observing that the GST will also provide a bouyant source of revenue for medium-term, he said “at a time when the fiscal outlook looks challenging, India needs this solid tax base for the future to be able to finance the social expenditures, agriculture, rural economy… the economy really needs.” The government is creating a situation where states and the Centre are pooling in their strengths for better India.
He also said “one of the great American President said the only two certainty in life are death and taxes. I think in this (GST) instance, India could very happily give up the tantalising uncertainty and could have the certainty of GST very soon.”
Agreeing with Subramanian, Finance Minister Arun Jaitley said, “When death is preceeded by a prolonged illness, it becomes agonising. I hope the same doesn’t happen with the GST. ”