BJP promises reforms in tax sector to curb inflation, boost growth
With the Lok Sabha polls just around the corner, the Bharatiya Janata Party (BJP) on Sunday announced its plans for structural changes in the tax regime to "check inflation" and "boost the country's revenue" were ready.
Under the proposed system, only three to four out of the total 34 taxes will be retained while the rest would be abolished, former BJP president Nitin Gadkari said in Pune.
Gadkari has supervised the planning of India Vision 2025, a roadmap the party claims that it would follow if it is voted to power in the 2014 general elections.
"In order to strengthen economy, we have proposed the rationalisation of tax system — under which three to four taxes will be retained out of the 34. This will reduce inflation and increase country's revenue up to Rs 25 lakh crore from the existing Rs 17 lakh crore," Gadkari said.
According to him, the vision document, which has been prepared after consultations with experts from different fields, will be presented to BJP president Rajnath Singh on March 8.
The BJP president will put forward the document before the party's parliamentary board for its approval.
The BJP plans to link the tax system with e-governance and promises to make it simplified, said Gadkari, even though the reforms that the party has been talking about have met with criticism.
The proposal advocates eliminating central, state and local-level taxes. The party has also promised to bring in changes in currency notes with denomination of 500 and 1,000.
"The country gets fake currency from Pakistan and Bangladesh. We want to make currency notes with new ink and paper, making impersonation a difficult task."
Gadkari, who has been assisted by 450 people including IITians and former IAS officers in preparing the vision document, also said the BJP had singled out five sectors — administration, education, taxation, judiciary and police — to usher in radical changes.
The BJP has also put emphasis on e-governance which can solve the problems of red-tapism and corruption to a great extent, he added.