India's Tax Chief Praises Recent Reforms

by Lorys Charalambous, Tax-News.com, Cyprus

08 January 2004

Chairman of India’s Central Board of Excise & Customs Mr A K Singh said that recent tax reforms and procedural simplifications have resulted in an 11% annual growth in revenues in recent years.

“It has been realised for the first time that the honest tax-payers were the most patriotic people and partners to the nation’s progress and they could be relied upon,” Mr Singh told reporters on Tuesday, adding: “It is also for the first time that chairmen of CBEC and CBDT (direct taxes) have been included in the core budget committee.”

One of the many successful reforms referred to by Singh was the reduction in duty on vehicles from 32% to 15%, which he said has led to a boom in the automotive industry. Moreover, the lowering of duties has had the added effect of reducing tax evasion, the chairman added.

Singh also noted that the programme of computerisation at major customs points in various ports and airport is well underway, with 24 centres now modernised and a further 12 smaller centres scheduled for computerisation by March 31st 2004.

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