SME Times News Bureau | 27 Feb, 2020
The government was "steadily but clearly" moving towards a
less regressive taxation system and removing the criminal angles which are
unwanted in every Act dealing with tax issues, Finance Minister Nirmala
Sitharaman said on Thursday.
"Eventually, we hope to have in India a simplified taxation structure,
completely reduced rates of taxation, and therefore an easy-to-comply system.
So as regards taxation we went in that route.
"Now, if you notice, as we are talking of removing or reducing the
personal income tax, we removed the dividend Distribution Tax totally. So every
time we are taking a step towards simplifying, we are removing that which is
seen as a double taxation, or a regressive taxation," Sitharaman said
during an interaction with traders and industry representatives in Guwahati on
the Union Budget 2020-21.
The Finance Minister, who was accompanied by Finance Secretary Rajeev Kumar,
DEA Secretary Atanu Chakraborty, Revenue Secretary A.B. Pandey and SBI Chairman
Rajnish Kumar, said it was a part of Prime Minister Narendra Modi's reform-mindedness
when dealing with businesses.
"We are steadily but clearly moving towards less regressive system."
Responding to queries from the businesspeople, she said it was also the
government's clear cut policy to remove elements which introduce the criminality
angle to even a civil omission or commission as regards business laws.
"So I think even within the first six months of the present tenure, we
have, in one or two Acts, very clearly diluted the criminality angle and in
some cases clearly removed them also.
"Even as we speak, there is work going on to look at the Companies Act to
see what are the provisions in which criminalisation is coming up and we are
trying to remove them. We are looking at every act to see where this has become
so pronounced in terms of bringing the criminalisation. We will remove the
criminal angle in everyone of these Acts which are unwanted," she said.
Sitharaman directed the top Central Board of Indirect Taxes and Customs
officers in Assam to meet people including businesspersons and other tax
holders between 4-6 p.m. on every working day till March 15 and clear their
doubts on taxation issues.
"You send us a comprehensive report by March 20 in which you should
mention the queries which you could not reply. The higher officials in Delhi
will respond," she said.
On the budget announcement of developing Sivasagar in Assam as one of the five
archaeological sites to be developed as iconic sites with onsite museum,
Sitharaman said she would work closely with the state's Sarbananda Sonowal
government and ensure the project was designed and taken up the way the state
wanted it.
The minister said local Self Help Groups will be given greater access to credit
to supplement the economy, and stressed on the need for traditional industries
in the Northeast to have facilities to exhibit themselves.
Fifty business industries and institutions from the north eastern region
attended the interaction.