Single Tax attractive but not easy -Jaitley

By Vijay Kumar

THE proposal to replace income tax and excise with a single tax on banking transaction is "attractive" but several questions have to be answered before it is implemented according to BJP leader Arun Jaitley while addressing a Seminar on 'Simplification of Tax Laws in India' organised by the Institute of Chartered Accountants of India.

He added,

At present, society is distraught with excessive taxation, complex taxation and Inspector Raj and that's why this proposal looks attractive, but there are many questions in implementation of this.

In the current political scenario, federalism is at centre stage, and when we start collecting taxes at one point, it will be a challenge for the Centre to make states understand that it will lead to increase in tax collection.