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`Budget may not tinker with direct taxes'

Our Bureau

NEW DELHI, Jan. 4

THE Minister of State for Finance, Mr G.N. Ramachandran, has hinted that the Government may not tinker with the direct tax rates in the ensuing Union Budget for 2002.

``The Government is looking at ways to improve the tax-GDP ratio, while keeping the tax burden minimal on the masses,'' he said at a tax conference organised by the Federation of Indian Chambers of Commerce and Industry (FICCI) here on Wednesday.

A further rationalisation of the import duty structure is also on the cards. The Finance Ministry would also continue to strengthen the anti-dumping mechanism, Mr Ramachandran said.

The Government would also consider the recommendations of the expert committees on taxation of the life insurance sector, e-commerce taxation and transfer pricing while formulating the Budget.

According to Mr Ramachandran, the overall growth in gross domestic product (GDP) is expected to touch around 6.5 per cent in the current fiscal.

Several measures, including curtailment of non-Plan expenditure, would also enable the Government to rein in the fiscal deficit at 5.1 per cent of the GDP during 2000-01. The recent data released by the Controller-General of Accounts (CGA) clearly indica ted that the Centre's fiscal deficit was under control, Mr Ramachandran said.