Parthasarathi Shome, the Chairman of Tax Administration Reforms Commission, constituted by the Finance Ministry, today hailed the decision to defer General Anti-Avoidance Rules (GAAR) as announced in the Budget.
"Deferment of GAAR is a welcome move as it will give confidence to the industry in tax administration," said Shome at a seminar organised by ASSOCHAM here.
Sharing his views on the Budget, he said it was high time for the government to roll out the clear structure and rates in the proposed GST regime before the stakeholders for its effective implementation on April 1, 2016.
He said reduction in corporate tax rate from 30 per cent to 25 per cent in phased manner over a period of four years was a step in the right direction.
Shome also highlighted that India was still among the poor emerging nations wherein there was unequal distribution of wealth.
Only Rs 800 crore to Rs 900 crore was collected in the form of Wealth Tax, which unnecessarily burdened the taxpayers and tax department with compliance and administration costs, he said.
Hence, abolition of Wealth Tax and the move to increase surcharge levy by two per cent on the super-rich taxpayers would have justification, Shome added.
