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This article is more than 5 month old.

Revenue Secretary Tarun Bajaj: Govt policy meant to give stable, predictable tax regime

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Revenue Secretary Tarun Bajaj on Wednesday said that the government's policy is meant to give a stable and predictable tax regime and hence the last budget did not impose any new taxes.

Revenue Secretary Tarun Bajaj: Govt policy meant to give stable, predictable tax regime
Revenue Secretary Tarun Bajaj on Wednesday said that the government's policy is meant to give a stable and predictable tax regime and hence the last budget did not impose any new taxes.
"The idea is to give time to the corporate sector to plan. I am quite pleasantly amazed at the resilience of the corporate sector. I see very very robust tax revenues without raising rates," he said.
Bajaj further said that the corporate sector is perhaps doing better and pandemic has resulted in the formalisation of the economy.
"Formal sector has gained a lot which is reflected in tax revenues. Indirect taxes like customs are being graded to provide comfort," he added.
"I can't see much private investment happening from the corporate sector," Bajaj added.
Talking about the tax base, the revenue secretary said we need to increase the tax base and the current tax buoyancy is due to a lot of quiet steps taken by the government.
On the corporate sector, Bajaj said the government doesn’t want to increase tax rates for the corporate sector.
“The whole idea is to give the corporate sector time to plan itself, give it a stable tax regime so that so that you are able to decide on other things, whether you want to invest where you want to invest and how you want to invest.”
The revenue secretary also added that the CBDT has been asked to clear refund backlog in the same financial year and won’t call the industry to pay extra taxes in the month of March.
Speaking on GST revenues, Bajaj said they are stable at over Rs 1 lakh crore by increasing compliance. He also added, “hope to see a better tax GDP ratio this year without raising rates.”
He added that the government is tempted to tinker with goods and services tax (GST) rates but won’t do it for the need of stability. Bajaj also added that the cess on the auto sector will continue for a few more years.
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