INSUBCONTINENT EXCLUSIVE:
Arun Jaitley said in last 4 years, central government's tax-GDP ratio has improved from 10% to 11.5%New Delhi: Union Minister Arun Jaitley
today urged citizens to pay their due share of taxes "honestly" to reduce dependence on oil as a revenue source, and virtually ruled out any
cut in excise duty on petrol and diesel saying it could prove to be counter-productive
While salaried class pay their due share of taxes, Jaitley said "most other sections" have to improve their tax payment record, which is
keeping India "far from being a tax-compliant society"
"My earnest appeal, therefore, to political leaders and opinion makers would be that evasion in the non-oil tax category must be stopped
Today In Your City: Five Things To KnowIn the medium and long run, upsetting the fiscal maths can prove counter-productive," Jaitley said
years, central government's tax-GDP ratio has improved from 10 per cent to 11.5 per cent
Almost half of this, 0.72 per cent of GDP, accounts for an increase in non-oil tax-GDP ratio
boosted by buoyant international environment, he said
We know what happened during the Taper Tantrum of 2013
Fiscal indiscipline can lead to borrowing more and obviously increase the cost of debt
earning extra due to abnormal increase in oil prices," Jaitley said
retorted "this is a 'trap' suggestion"
We must remember that the economy and the markets reward structural reforms, fiscal prudence, and macro-economic stability
"They punish fiscal indiscipline and irresponsibility
The transformation from UPA's "policy paralysis" to the NDA's "fastest growing economy" conclusively demonstrates this
The government is aspiring to improve the tax-GDP ratio," Jaitley said.Chidambaram had last week claimed that it was possible for the centre
rupee cut in excise duty on petrol and diesel will result in a revenue loss of about Rs 13,000 crore
Most other sections still have to improve their track record
The effort for next few years has to be to replicate the last four years and improve India's tax to GDP ratio by another 1.5 per cent
"The increase must come from the non-oil segment since there is scope for improvement," he said
"The tragedy of the honest tax payer is that he not only pays his own share of taxes but also has to compensate for the evader," he said
central government taxes are shared with the states
State governments collect their 50 per cent from GST besides their local taxes
These are independent of taxes on petroleum products
The states charge ad valorem taxes on oil
If oil prices go up, states earn more, he said.
