Monday, February 28, 2011

Process of Tax Reforms to be Expedited

Presenting the Budget 2011-12 in the Parliament today, the Finance Minister Shri Pranab Mukherjee stressed that introduction of Direct Taxes Code (DTC) and Goods & Services Tax (GST) will result in moderation of rates, simplification of laws and better compliance. He said DTC will be finalized for enactment during next financial year. The DTC Bill that was introduced in the Parliament in August 2010 is before the Standing Committee. The DTC Code is proposed to be effective from April 1, 2012. Marking a water shed, the GST roll out will have to be taken in concert with the States as areas of divergence have been considerably narrowed in the last four years. Shri Mukherjee proposed to introduce Constitution Amendment Bill in this Session itself as a next step towards the roll out of Central & State GST.

Significant progress has been achieved in establishing GST Network, which will serve as IT infrastructure for introduction of GST. By June 2011, the National Securities Depository Limited (NSDL) will set up a Pilot Portal in collaboration with the eleven States prior to its roll out across the country.

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