No more Tax Terrorism - It's Modi-fied Value Added Taxation (MODVAT)
THE BJP's 2014 Election Manifesto proclaimed, UPA Government has unleashed 'Tax terrorism' and 'uncertainty', which not only creates anxiety amongst the business class and negatively impacts the investment climate, but also dents the image of the country. BJP realizes the importance of having a Tax Policy Roadmap, so that people are aware of the future and plan accordingly. We will:
++ provide a non adversarial and conducive tax environment
++ rationalize and simplify the tax regime (emphasis as in the manifesto)
++ overhaul the dispute resolution mechanisms
++ bring on board all State governments in adopting GST, addressing all their concerns
++ provide tax incentives for investments in research and development, geared towards indigenization of technology and innovation
The Manifesto also mentioned that to eliminate the scope for corruption, BJP will simplify and rationalise the tax regime - which is currently repulsive for honest tax payers.
BJP promised to provide to senior citizens financial support, additional tax benefits and higher interest rates.
In the manufacturing sector, BJP promised to take steps for Interest rate rationalization and have a clear tax policy to remove uncertainty and create investor confidence.
Now that they have come to power, will they remember these promises? Let's hope they do. We will remind the Finance Minister periodically.