Enthused by the healthy tax collections so far in this fiscal and during the three-and-half years of the UPA regime, Finance Minister P Chidambaram on Saturday hinted at a moderation of taxes in the forthcoming Union Budget.
"We believe taxes must be moderate and must be administered in a taxpayer-friendly manner," he said while expressing his happiness with the record tax compliance.
"I am happy with the tax compliance and in the three-and-half years of the UPA Government, tax compliance improved dramatically, partly due to greater respect for tax payers." Chidamabaram said several new legislative and administrative measures taken by the Government had resulted in fiscal stability and increased tax revenues.
The Minister was speaking after releasing the booklet 'Service Tax: Frequently Asked Questions' prepared by the Central Board of Excise and Customs (CBEC) on FBT on Employee Stock Option Plans (ESOPs).
Publication of booklets is an act of demonstrating transparency in tax administration in the country, he said.
Service tax has been among the fastest-growing taxes in the country. Beginning with a modest figure of Rs 407 crore during 1994-95 when the tax was introduced, the service tax collections are set to cross Rs 50,200 crore during the current fiscal.
The financial capital, at approximately Rs 19,000 crore, accounts for 38 per cent of the total service tax collection in the country.