ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Curbing the Black Economy

The Bharatiya Janata Party-led government, which promised to tackle the generation of black incomes and to even bring black money back to India, has over the past two years made many announcements that have little bite, like double taxation agreements, among others. Without strong deterrence, curbing the black economy is difficult. That is why widening the direct tax base from 1% of the population, evident from the recently released tax data, has not been feasible.

Task Force Reports on Direct and Indirect Taxes

In spite of some limitations and weaknesses, the Task Force reports on direct and indirect taxes have covered the large and highly complex canvas of tax administration competently. Their comprehensive treatment of issues, within the very short time given for their deliberations, is commendable. As the reports have underlined, the efficiency of the recommendations is likely to be seriously vitiated if individual components are selectively accepted or rejected and reforms continue in a piecemeal manner. Success of tax reform efforts depends on their implementation as an integral package.
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