New Delhi: The Minister of State for Finance Jayant Sinha emphasized that there was urgent need to enhance the tax to GDP ratio in India, which was lower than those in some of the developing economies such as Kenya, Uganda, and Nepal. Expanding the tax base and improving the tax compliance were therefore of utmost importance. Sinha was speaking at a function organized here yesterday by the Central Board of Excise and Customs (CBEC), Ministry of Finance to celebrate the Central Excise Day. The Central Excise Day is celebrated every year to commemorate the Central Excise and Salt Act which was enacted on 24th February 1944.
Speaking on the occasion, Sinha who was the Chief Guest exhorted the officers to work on innovative ideas to facilitate starting and doing a business such as development of mobile applications to facilitate starting of business even by a small vendor or a group of students. Officers also needed to make it attractive for a businessman to be part of the tax-net than to avoid it.
The Minister of State for Finance, Sinha informed that the day was also historic for the reason that the 14th Finance Commission had recommended unprecedented hike in the States’ share of Central taxes by 10 percentage points from 32% to 42%, which is a move in the direction of “cooperative federalism” strongly advocated by the Prime Minister Narendra Modi himself. Finally, he lauded the stellar role being played by the Central Excise Department in contributing to nation building and congratulated all the awardees and their families.