In a customary communication to commerce and trade associations within the run-up to the Union Funds, the Income Division's Tax Analysis Unit has requested them to ship their solutions by November 10.
The solutions might be for adjustments within the obligation construction, charges and broadening of the tax base on each direct and oblique taxes, giving financial justification for a similar, in addition to these regarding easing compliance.
“Your solutions and views could also be supplemented and justified by related statistical details about manufacturing, costs, income implications of the adjustments recommended and every other info to help your proposal,” the communication added.
The ministry additionally mentioned that requests for correction of inverted obligation construction, if any, for a commodity, ought to be supported by worth addition at every stage of producing of the commodity.
With regard to direct taxes, the ministry mentioned the federal government coverage within the medium time period is to part out tax incentives, deductions and exemptions whereas concurrently rationalising the charges of tax.The ministry requested the trade to record out “optimistic externalities” arising from the direct tax suggestions and their quantification.
