Finance minister Arun Jaitley on Sunday assured that the new tax regime will be simplified in the coming times by reducing the number of tax slabs with more revenues. “Eventually once we become revenue neutral to think in terms of bigger reforms such as lesser slabs…But for that, we have to become revenue neutral plus,” said Mr. Jaitley while agreeing to the fact that there exists a scope for further improvement in GST in order to reduce the compliance burden for the small taxpayers.
The current model of GST is quite complex, courtesy the four-tier tax structure along with numerous exemptions and compensation cesses. Mr. Jaitley is aware of the transformations in the new indirect tax regime that will have a significant impact on the economy as a whole. He also emphasized on the need for revenue which is required by the government.
“Revenue has a great importance in society…it is the lifeline of governments. It is the lifeline of all developmental activities,” said the finance minister, adding that each individual has a responsibility to pay the taxes.
Mr. Jaitley noted that is an increased realization of the vitality of greater compliance through GST as well as the direct tax reforms. In addition to this, he insisted the tax officials to ensure that the funds are utilized with the utmost level of honesty and there is no leakage of money or harassment of people of any sort.
“You don’t have to extort taxes out of those who are not liable to pay, but you are certainly liable to collect taxes from those who have to pay. Standards of fairness and compliance must be the highest,” he stated clearly.
In addition to this, the finance minister clarified that there exist no grey areas in the implementation of the tax laws. If a tax needs to be paid, then it’s payable and if not, then there exists no need to pay the same.