India needs lower level of taxation to be globally competitive: Arun Jaitley

26 December, New Delhi

Union Fnance Minister Arun Jaitley has said that India now needs to move to a lower level of taxation to be globally competitive, stating that extraordinary high taxation rates in the past have led to higher tax aversions.

Addressing officers of the Indian Revenue Services (Customs and Central Excise) at Faridabad in Haryana today, Jaitley said, the need is lower level of taxation to provide services more competitive in nature.

Emphasising that as the country needs to move to a tax-friendly environment, the Finance Minister said that the authorities need to be fair in interpreting the tax laws. He said, tax authorities are judged by the quality of what they write or what they decide.

He said, Level of fairness followed by tax authorities will define the quality of interpretation of tax laws by tax authorities.

He said, voluntary compliance by citizens by payment of due taxes needs to be reciprocated by tax authorities by a tax-friendly administration. He said, officers should have a high-level of integrity, honesty, sincerity and do hard work with eagerness to learn new things.

Jaitley said that payment of taxes is the basis of development of an economy and in many economies while they develop, payment of taxes is part of citizens’ duty. He said, people lived through last 7 decades in India under impression that there is nothing immoral in tax avoidance of government revenue which was considered to be commercial smartness.

He said, payment of legitimate taxes is part of a citizen’s duty and non-payment will have severe consequences. He said, voluntary tax compliance will have to increase in the future.