The Centre is working to reform the direct taxes regime so as to usher in a “predictable, simple and fair” tax system in the country, Jayant Sinha, Minister of State for Finance, has said. The recent proposal to do away with some of the exemptions enjoyed by corporates is aimed at reducing litigation and reducing discretion, Sinha said in his address at the 110th annual session of the PHD Chamber of Commerce and Industry in New Delhi.
The objective behind the changes proposed is to ensure that taxpayers are not forced to deal with an “adversarial rent seeking” tax system, Sinha said.
Responding to a comment that not much seems to be happening at the “ground level” as far as economic reforms is concerned, Sinha said he does not share this perception.
“We are taking several steps to reform India so as to transform India. As we pursue several game-changing initiatives, we are faced with implementation challenges,” Sinha said.
Sinha reeled out the initiatives undertaken by the Modi-led Government over the last 18 months. He also indicated that the Government would soon launch a ‘Start-up India’ programme to encourage the start-up ecosystem in the country.
“There is a need to build an innovation ecosystem to propel India's growth. We are not only a pro-poor Government, but also a pro-market Government,” Sinha said.
The outgoing PHDCCI President Alok Shriram called for changes in the new company law.
“The present law has put an unreasonable burden on the MSME sector. Many of the MSMEs will collapse under the compliance burden of the new company law,” Shriram said.