Kolkata: The tax assessment process requires a lot more transparency and has to be process-driven and not discretion-driven, Union Finance Minister Nirmala Sitharaman said here Friday, as she asked tax collectors not to overreach.
“If technology is used, it will be far more convenient to collect tax,” she said.
On tax collection target, the minister said that the target has been given after due consideration and any shortfall won’t affect social sector spending.
Amid rising demand from the auto sector for more relief measures including a rate cut, Sitharaman said that the proposal to cut tax rates would be discussed by the all-powerful GST Council.
“GST rate cuts are a call the GST Council has to take, it is not in my hands,” she said.
She said that one more round of measures to boost the economy would come. Further, the government was looking at the challenges faced by various sectors and a response was being formulated after engaging with them.
Speaking to reporters after an interaction with tax officials, the Finance Minister said while tax compliance has to be there, she conveyed the message that collectors should not overreach.
There was a need to stop the narrative that there probably are “some entrepreneurs who are also being troubled in the process of performing their duties and compliance.
“So the engagement with the tax administrators is aimed at conveying to them Prime Minister Narendra Modi’s Independence Day message that wealth creators, job creators, entrepreneurs, business leaders have got to be facilitated.
“And only when economic activity is going to be flourishing, will there be gentle tax collection which is necessary for the country. It has to be ensured in the process of collecting taxes, businesses are facilitated to carry on with their core work,” she said.
Sitharaman said the meeting – the seventh in a series she has had with the tax administrators – also aimed at understanding the challenges faced by them.
In that context, she stressed on the need for bringing greater technology assistance for the tax administrators and make the process convenient for the assessees.
Meanwhile, the finance ministry Friday asked large central public sector enterprises (CPSEs) to stick to their capital expenditure plan which will increase liquidity in the market and boost economic growth. This was emphasised during a meeting between finance ministry officials and heads of ‘Maharatna‘ and ‘Navratna‘ CPSEs.
