GCCI seeks focus on tax collection

Pre-budget memorandum wants simplification of excise and customs procedure

The Gujarat Chamber of Commerce and Industry (GCCI) has requested the Union finance minister P Chidambaram to emphasis on collection of direct and indirect taxes while formulating the budget proposals for 2004-05.

The chamber submitted a pre-budget memorandum containing suggestions about various sectors to the finance minister.

"Improved economic performance has resulted in an increase in revenue collection of the central government. Direct tax collection has reached nearly Rs 1,00,000 crore, which is higher by 27 per cent compared with the last year, whereas indirect tax collection has reached Rs 1,04,748 crore, higher by 12.3 per cent over the last year. Our detailed suggestion on direct and indirect taxation has been submitted in the 47-page pre-budget memorandum," Shreyas Pandya, president, GCCI, said.

The memorandum contains suggestions on raising literacy level, creation of employment opportunities, increasing per capita income, labour reforms, fiscal deficit, public finances, development of infrastructure, exports, capital market, co-operative banking sector and direct and indirect taxation.

"Prime Minister Manmohan Singh had expressed his views on making India an economic super power when he addressed members of the chamber on April 10 during election campaign. His view was that economic reforms undoubtedly had to be carried forward, but with a humane face. We have to consider several issues on priority to make Indian a major global economy in the next decade," Pandya said.

Growth in economy has helped increase revenue collection. A factor that will help in higher tax collection is better compliance by the tax payer, he said.

Various committees of the government have recommended simplification of excise and customs procedures. However, these recommendations have been adopted and implemented in a piecemeal manner, he said.

"Multilateral trade and other agreements signed have made it mandatory for us to be in consonance with the international trade arrangements. Some of the deadlines have been met and some of these would have to be adhered to in the coming years. In this backdrop and keeping our national perspective in view, we feel there is a need to synchronise our commitments at the earliest," said Pandya.