New Delhi, Feb 2 (FN Bureau) Chief Commissioner of Income Tax Shishir Agarwal on Thursday said the IT Collection Cost in India is the lowest in the world. “We spend just 57 paise to collect every hundred rupees Income Tax. We are one of the lowest in the world”, said Agarwal while addressing a seminar hosted by FTCCI (Federation of Telangana Chambers of Commerce and Industry) on Post Union Budget 2023-24—Implication for Trade and Industries here. He said said “UK spends 73 paise, Japan 174 paise, Germany 135 paise, Canada 150 paise, France 111 paise. The USA is the only country that spends less than us”. For the fiscal 2021-2022, we have collected an all time record tax.
The net direct tax collections (income tax and corporate tax) reached an all time high of Rs 14.09 lakh crore, Agarwal said, adding, however, this year also it is equally good and stands at 14.08 lakh crore, 24 per cent higher than the previous year. We are quicker in refunds than ever before, the Chief Commissioner said 65 per cent of IT returns filed were processed and refunds were made within 24 hours of filing. We have moved to a faceless tax process, which is the first in the world. We understand tax payers’ aspirations and bring tailor-made initiatives for tax payers benefit for a better tomorrow. India’s time has come now, Agarwal stated. Speaking about the Union Budget presented by Finance Minister Nirmala Sitharaman in Parliament yesterday, he termed it as ‘progressive’. It was presented in line with Government of India policies and vision 2047.
It was an effort moving to a new tax regime. It was simple and more open, Agarwal added. Participating in the Seminar, Central Tax Commissioner (Secunderabad Commissionerate) DP Naidu, said it was a budget of openness and transparency. There were no surprises and shocks unlike in the past when I joined the department 30 years ago. More legislative changes were proposed in the budget. The Finance Minister made a sincere effort in simplifying Indirect Taxes compliance towards incentivizing, encouraging exports and for manufacturing of greener products, Naidu said. Sitharaman had announced a reduction in Customs duty on lithium batteries, mobile phones components and others to boost their manufacturing in India he said and added that this will encourage manufacturing in a phased manner. It will also spur the growth of certain sectors. Except for a few legislative changes, not many changes were made to GST. This will also help to have stable revenue from GST, which stands now at 1,50,000 crore, he added. In his welcome address, FTCCI President Anil Agarwal, said the Union Finance Minister came out with a people centric budget taking into consideration the global recession and slowing growth rate. The budget presented on Wednesday was the mission for the next 25 years.
It laid the foundation for the same. It balanced one and presented a comprehensive plan for capital infrastructure spend and tax cuts that will have a positive impact on the country’s economic growth and job creation, said Sushil Sancheti, Chairman, JITO Hyderabad Chapter. It was not an election budget and it is not even an annual budget, but a budget to lay the foundation for the next 25 years, said Hari Govind Prasad, Chairman, Direct Taxes Committee of FTCCI. It was a neutral budget, said VS Sudhir, Chairman, GST & Customs Committee of FTCCI. The Budget shouldn’t have been silent on setting up GST Tribunals. The taxpayers have been eagerly waiting for the announcement in the budget. The budget has disappointed tax payers on that front, he added. Jayesh Sanghvi, Managing Partners of Ernst & Young LLP, Hyderabad said the budget has made the right posture for the right target. But it has not spelled out anything FRBM (Fiscal Responsibility & Budget Management) Act. As per the latest position on the Act, the Government is required to limit the fiscal deficit to 3 percent of the GDP by March 31, 2021. The Centre is required to limit debt of the Central government to 40 per cent of the GDP by the year 2024-25. On the whole, the budget has battled for policy stability on Tax and Fiscal front, he observed. Over 200 professionals, experts from different walks of life attended the seminar.