Date:26/02/2005 URL: http://www.thehindubusinessline.com/2005/02/26/stories/2005022602550400.htm

Back `Tax system must be simplified further'

Our Bureau

New Delhi , Feb. 25

THE present tax system, for both direct and indirect taxes, needs to be further simplified and streamlined, the Economic Survey has said.

It has also held that higher tax revenues have to be realised not through increasing tax rates, but through innovative changes in policies, procedures, laws and dispute settlement mechanism that would help overcome the problems associated with the present complex system.

The Survey has also noted that the adherence to fiscal responsibility and budget management targets critically hinges upon the success in raising the tax-gross domestic product ratio.