November 22, 2001

'15'

        The Union Finance Minister, Shri Yashwant Sinha has said that an efficient tax system has to be based on rational tax laws and simple procedures with an inbuilt system of deterrence against tax evasion. Addressing the Central Direct Taxes Advisory Committee today, Shri Sinha outlined the simplification of direct tax laws and rationalization of procedures carried out in the last three years. As a result of the one by six criterion, the number of tax-payers has almost doubled during this period, he added. The Finance Minister said that a major innovation has been introduced to ensure quick refund to the assesses. Some of the measures like the introduction of Saral Form, Samman Scheme and steps taken by the Department in reducing public harassment and ensuring accountability were highlighted.

        The Members gave a number of suggestions on the amendments that are required, besides steps required for simplifying the procedures. Various measures required for widening of tax base, which, at present, is rather small as compared to the population of the country, were also put forth. All these suggestions will form the background material for the forthcoming budget.

        The Vice-Chairman of the Committee, Shri G. N. Ramachandran, Minister of State for Finance (Revenue) was also present. The Committee consisting of four Members of Parliament, nine non-official members and three official members aims at advising the Government on measures for encouraging mutual understanding and cooperation between the tax payers and the Income Tax Department.