In the UPA Government's first Budget, and more so in the second, I had attempted significant tax reforms. The results are encouraging.

In 2004-05, gross tax revenues (provisional actuals) increased by 19.9 per cent over the actuals of the previous year and, according to Revised Estimates, in 2005-06, they are expected to increase by 21.4 per cent over the provisional actuals of the previous year. These figures confirm our belief that we should keep our tax rates moderate and stable

My tax proposals on direct taxes are estimated to yield a gain of about Rs 4,000 crore. On the indirect taxes side, the gain is estimated at Rs 2,000 crore.

Our Government's two Budgets have seen many innovations - the Gender Budget, the Outcome Budget etc. Today, I place before the House another innovation - a statement on revenue foregone, known worldwide as tax expenditure statement. This statement captures the departures from the normal tax regime. This exercise is a first attempt that will be fine-tuned in the years to come.

I am glad to inform the House that technology is being increasingly employed to modernise tax administration. The Departments of Income Tax and Customs and Central Excise will undergo Business Process Reengineering. Jurisdiction-free filing of returns, online tracking of status of accounts and refunds of income-tax will be possible. Introduction of a risk management system and Electronic Data Interchange in the Customs Department will reduce dwell time for cargo. E-payments of Customs and excise duties will be possible. Both departments will have fully computerised networks by end-2006.

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