Need for Increasing The Tax GDP Ratio
Presenting the Union Budget in the Parliament today, the Finance
Minister Shri P.Chidambaram underlined the need for increasing the Tax GDP
ratio. The Finance Minister said that in FY 2011-12, the Tax GDP ratio was 5.5
percent for direct taxes and 4.4 percent for indirect taxes. These ratios are
one of the lowest for any large developing country and will not garner adequate
resources for inclusive and sustainable development.
Shri P.Chidambaram further added that in 2007-08, the Tax GDP ratio touched a peak of 11.9 percent and in the short term, we must reclaim that peak.
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