28, December 2022, New Delhi
A distinguished panel at the event:
- Swapan Sarkar - Owner Sarkar & Associates, is a legal luminary, He is well-respected in the legal circles as a legal expert.
- P. C Jha, Former Chairman, CBIC and Advisor, FICCI CASCADE
He is a financial expert he has worked in various capacities as a financial consultant and advisor to many institutions. He has had an impeccable track record of excellence as a financial expert.
- Sandeep Chilana - Managing Partner Chilana & Chilana Law Officers.
He is a legal expert for many years, he is well-respected in the legal circles as a legal professional.
- Sanjaya Baru, Eminent Journalist and Advisor, Think Change Forum
Distinguished Fellow, Institute for Defence Studies & Analysis Dr Sanjaya Baru is a renowned journalist, author, and policy expert, who served as Media Advisor to PM Manmohan Singh (2004-08). He is a Ph.D. in Economics from JNU, He is the Author of the book ‘The Accidental Prime Minister’.
- S Ramakrishnan - Public Finance Expert.
He has had a rich experience over the years as a public finance professional, he has been associated with many financial institutions in various capacities. The event organized by Think Change Forum had many well -known personalities on the panel, who shared their thoughts on tax collection compliance, rules and regulations. The panel believed that compliance is a big obstacle in tax collection; the panel further said that the cost of inefficiency in compliance should not be borne by honest taxpayers. The panel at the event observed that higher taxes on lucrative sectors is giving rise to smuggling, flooding of counterfeit products and underground operations. The panel believed that simplified and consistent tax structure is needed; complex tax policy encourages evasion. The panel at the event observed that the tax net needs to be widened, by including tier 2 towns and cities with rapidly growing economic activity should be in the tax ambit. The panel believed that tax widening is required, so that the government has enough money to invest in development related activities. The panel further observed that poor compliance was No 1. deterrent in achieving targeted collection leading to complex issues like overtaxing, complicated tax structures, rising litigation, among others. One of the eminent panelists at the event Swapan Sarkar, Owner Sarkar & Associates observed that simplified tax structure like other emerging markets in the world is the way forward for India. Mr. Sarkar was also of the opinion that the Government should completely do away with surcharge as it is responsible for an overall increase in direct tax payout and disturbs the federal structure of the country as well. One of the very well-known panelists PC Jha, Former Chairman, CBIC and Adviser- FICCI Cascade observed that enforcement agencies were doing their best to curb tax evasion, but tax evaders are almost always ahead of the curve and using innovative techniques to smuggle goods into our country. One of the eminent panelists Sandeep Chilana - Managing Partner Chilana & Chilana Law Offices said, Tax litigation is one of the biggest burdens on the system. And this is due to the complex nature of our taxation laws. Mr. Sandeep further said the simple clear tax laws will build confidence and reduce tax evasion. The panel observed that high taxes are leading to evasion. The business community believes that government takes 40% of their earnings by being a sleeping partner and there is no return on their taxes such as better infrastructure or citizen facilities like healthcare or education. Dr. Sanjaya Baru, Eminent Journalist and Advisor, Think Change Forum observed that in India, a large section of individuals escapes and avoids taxes without being punished for it. In India only a small percentage pays tax. If we compare our Tax GDP ratio with other rapidly developing economies, it is below par. Well-known personality at the event Mr. S. Ramakrishnan, Public Finance Expert observed in India, the tax to GDP ratio is around 20% including central, state, and local administration taxes. This is not very high owing to lack of compliance in the system. The panel made a strong observation on GST. They said GST has brought a lot of compliance into the taxation system but in turn, has affected the MSME sector.
The panel further said with GST the profit margins of businesses have been affected by 50%. Having said that, the problem also lies with MSMEs not knowing how to maximize input tax credit and increase their profitability. The panel at the event concluded by saying that no changes in the current corporate taxation is required for at least next 2 years as many corporates are still recovering from the effect of the pandemic. The government should also look at revising the pension scheme and increasing it from Rs. 50,000 to 2 lakhs so that people save more.