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Lok Sabha
For the period 2004-05, the tax/GDP ratio for direct taxes provisionally works out to 4.24% whereas in case of indirect taxes, it is 5.51%. The consistent increase in direct tax/indirect tax collections is a combined result of various economic factors as well as legislative and administrative measures taken by the Government including widening of tax-base and rationalization of tax rates. However, it is not feasible to ascertain in revenue collection attributes to individual factors.
A number of steps have been taken to augment tax compliance which include rationalization of tariff structure, review and withdrawal of tax exemptions to the extent possible, plugging leakage of revenue through strengthening anti-smuggling and anti-evasion measures, simplification of tax collection procedures to improve tax compliance, levy of Education Cess, Securities Transaction Tax, Fringe Benefit Tax etc.
This information was given by Shri S.S. Palanimanickam, Minister of State for Finance in reply to a question raised by S/Shri Sunil Khan and S. Ajaya Kumar in Lok Sabha today.
BSC/BY/DN-284/05
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