Arun Jaitley Bats For A “Friendly Tax System”

India had been always under scrutiny for its not-so-friendly tax policies. While this had been negatively affecting foreign trade, it also have had its repercussions on the domestic front. Finance Minister Arun Jaitley raised this point in the Lok Sabha yesterday. While talking about the shortcomings of the Indian tax system, he proposed a “friendly tax system” as he feels it would discourage tax invasion in the country.

“Our tax system has to be friendly for tax payers and that is what we are trying to do step-by-step," Jaitley said in the Lok Sabha while speaking during a debate on black money,” said Arun Jaitley in the Lok Sabha.

He also discouraged higher tax rates, and said, “High tax rates do not necessarily mean more revenue collection... direct and indirect tax rates have to be brought to reasonable levels so that the basket increases and there is no incentive for tax evasion."

"When the media comes to know (names of black money holders), it will note that there are influential people in the list (of foreign account holders)," said the minister.

Unhappy with Jaitley’s reply to the Lower House, dissatisfied members of the Congress and the Trinamool Congress (TMC) staged a walkout.