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Big tax reforms in next fiscal: FM
July 12, 2004 14:31 IST
Last Updated: July 12, 2004 14:41 IST
Comprehensive tax reforms would be carried out in the next budget after taking into account the suggestions of Kelkar Task Force, which will submit its report within a few days, Finance Minister P Chidambaram said on Monday.
"The FRBM Act imposes tremendous fiscal discipline on us. The Kelkar Task Force (on FRBM) will submit its report within a few days. I will consider the recommendations and implement them in the next budget, which is only seven months away," he told a Ficci post-budget meeting.
Asserting that the Budget for 2004-05 mostly dealt with agriculture reforms, which were neglected by the previous NDA government, he said: "Comprehensive tax reforms will have to wait till the next budget."
"I am a votary of tax reforms. None of my successors tinkered with my income tax rates of 10, 20, 30 per cent (introduced in 1997) because it was comprehensive. If compliance improves, we can take a relook after some time," he said, hinting at revising income tax and corporate tax rates in future.
"I believe in stable, moderate tax rates and making tax administration friendlier and friendlier as days go by," he said, adding, "We are committed to more reforms, deeper reforms and faster reforms, yet carry out the commitments to rural India."