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KAS-ICRIER Financial Sector Seminar I/2012

Prospects and Challenges in Tax Reforms in India - Practical Aspects of Indian Tax Policy

On 28th March 2012, KAS and ICRIER conducted the quarterly Financial Sector Seminar about „ Prospects and Challenges in Tax Reforms in India - Practical Aspects of Indian Tax Policy” in Delhi. In this workshop, three experts discussed - along with an interested audience - the prospects and challenges of the Indian Tax Policy.

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Shyamal Mukherjee, Executive Director and Joint Tax Leader, PriceWaterhouseCoopers India, focused on “Practical Aspects of Indian Tax Policy”. He pointed out the increased information request, the focus on tackling the parallel economy and the aggressive approach aimed at widening the tax base as trends in the tax policy. These aspects result in an increased litigation. Mukherjee explained that the industry and the policy makers should be in a closer dialogue to ameliorate the situation. He demanded guidance for a better understanding of tax reforms for the individual.

Gautam Roy, Consultant to the Department of Revenue, Government of India, defended the retrospective changes in the tax policy and said, that a lot of amendments would be necessary to keep pace with the dynamic society. He pleaded for a platform, where a public discussion about the planned tax reforms can take place.

Rajiva Ranjan Singh, Consultant, World Bank & Asian Development Bank, claimed that out of the 300 million Indians, who count to the middle class and therefore are potential tax payers, only 30 million are actually paying taxes. He explained that the data of most of the potential tax payers is recorded, but the data cannot be fully evaluated due to administrative reasons. Singh argued that for this reason the officials in the income tax department should be trained better and also be employed on a long-term basis.

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