Budget 2015: Need to expand tax base and improve tax compliance, says Jayant Sinha

NEW DELHI: It is important to expand tax base and improve tax compliance, Minister of State for Finance Jayant Sinha said today, ahead of the Budget.

"There was urgent need to enhance the tax to GDP ratio in India, which was lower than those in some of the developing economies such as Kenya, Uganda, and Nepal. Expanding the tax base and improving the tax compliance were therefore of utmost importance," an official statement quoted Sinha as saying.

He was speaking at a function organised yesterday by the Central Board of Excise and Customs (CBEC) to celebrate the Central Excise Day.

The minister, who was the chief guest at the function, exhorted officials to work on innovative ideas to facilitate starting and doing a business.

He said the 14th Finance Commission's recommendation of hike in the states' share of Central taxes by 10 per centage points from 32 per cent to 42 per cent is a move in the direction of 'cooperative federalism' strongly advocated by the Prime Minister Narendra Modi himself.

Speaking on the occasion, Revenue Secretary Shaktikanta Das underlined that the department had to constantly strike a balance between trade facilitation and enforcement measure.

He emphasised that the officers should focus on three F's i.e. firmness, fairness and friendliness.