'Time To Widen India's Tax Base & Bring More People Into Tax Net,' Says FM Sitharaman Ahead Of Budget 2023

With roughly six weeks to go for Budget 2023, India's Finance Minister Nirmala Sitharaman has been busy meeting various officials.

Even at a time when recession fears, inflation concerns and rising interest rates are gripping the common man, the Indian government is on course to receive a much higher tax revenue than its budget estimates. But despite that, it seems that the government is focusing on further increasing tax collection.

'Time To Bring More People Under Tax Net'

PTI

Finance Minister Nirmala Sitharaman has said recently that it is now time that India widens the tax base for both direct tax and indirect tax. This should be the focus for both the Central Board of Direct Taxes (CBDT) and also for Central GST, and SGST authorities should also ramp up, she said.

The finance minister also urged Principal Commissioners to send details of how many new taxpayers have come on board along with the monthly revenue collection. She said so at the inauguration of newly constructed residential quarters at the Central Revenue Residential Campus in the city.

"I am happy to hear that this year we have also beaten the revenue collection. Keep doing that. From now on, I would like you to tell me how many more people have entered tax net. How many more people have joined in as taxpayers," she said, as per Hindu Business Line.

FM Sitharaman added, "I am quite happy to get the money and happy to get an increased total collection. But I think India now needs to widen the tax base.".

This emphasis on widening the tax base comes at a time the GST Council is not able to pursue steps to rationalise certain tax rates and raise revenue receipts amid concerns around inflation, as per Mint.

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Also Read: IMF Chief Calls India A 'Bright Spot' In The Global Economy

Using Data To Include People Into Tax Net

Central Board of Indirect Taxes and Customs (CBIC) Chairman Vivek Johri explained on the sidelines that widening the tax base could involve broadening the scope of data collection and matching data from different sources to identify those who ought to be in the tax base but are not. Ą°We are looking at use of more advanced data from other agencies," said Johri. Some states have volunteered to run certain pilot projects in this regard.

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