"We are committed to simplifying the tax system – direct and indirect and therefore, we have always said that we will be critically examining the Direct Tax Code and the GST Constitutional Amendments Bill by getting a consensus among the states and try and hasten the process of DTC,” Sinha told reporters here on Monday. (JPN/Agencies)
Sinha further said that a simplified tax regime will lead to higher collection of taxes rather than reduced receipts.
"We are quite confident that these two major tax reforms, if they are carried out by us, it will lead to better tax compliance and our receipts will go up," Sinha added.
Sinha said that the UPA government is leaving an economy which is in ‘worse crisis than even the earlier crisis in 1991 and 1998’.
"It will be a major challenge for the new government to deal with it when it assumes office," the BJP leader said.
He also attacked Finance Minister P Chidambaram saying he has not projected the right picture in maintaining the fiscal deficit at 4.6 percent and accused him of resorting to ‘tax terrorism’.
Listing out the "loopholes" in Chidambaram's projection, he said the expenditure has been savagely cut and termed it as a "mindless" reduction of expenditure and accused the tax administration of becoming "extortionary" by seeking advance tax from tax payers.
"Plan expenditure was reduced by Rs 80,000 crore. It is a mindless reduction of the expenditure. There has been no application of mind. It is as mindless as that done by a Class 7 student,” the leader said.
Sinha claimed that Chidambaram had transferred Rs 60,000 crore to upstream oil companies and transfer of another Rs 40,000 crore has been postponed to next year.
Sinha also charged Chidambaram with having ‘milked’ public sector undertakings for huge dividends much in excess of what is due and alleged the tax administration became ‘extortionary’ as it put pressure on people in seeking advance tax.
"Chidambaram has been a minister. He indulged in tax terrorism. He literally forced the tax payers to part with taxes which are much in excess of actual demands," he said.
"If I am wrong, let him respond. He has a full Finance Ministry with him," Sinha said.
On the issue of bringing backblack money, Sinha said, "I am asking Chidambaram: what is the difficulty in releasing all the names?”
“The BJP does not buy the theory of the government that blackmoney issue is governed by the double taxation avoidance agreement. Blackmoney is a criminal offence as per law in India,” he added.
"We are committed to simplifying the tax system – direct and indirect and therefore, we have always said that we will be critically examining the Direct Tax Code and the GST Constitutional Amendments Bill by getting a consensus among the states and try and hasten the process of DTC,” Sinha told reporters here on Monday.