We are committed to simplifying the tax system direct and indirect and therefore, we have always said that we will be critically examining the Direct Tax Code and the GST Constitutional Amendments Bill by getting a consensus among the states and trying and hastening the process of DTC. We are quite confident that these two major tax reforms, if carried out by us, will lead to better tax compliance and our receipts will go up, BJP leader Yashwant Sinha said, adding a simplified tax regime will lead to higher collection of taxes rather than reduced receipts.
Attacking the Congress-led government, he charged UPA with leaving an economy which is in a worse crisis than even the earlier crises in 1991 and 1998.
It will be a major challenge for the new government to deal with when it assumes office, Sinha said.
He also attacked finance minister P Chidambaram, saying he has not projected the right picture in maintaining the fiscal deficit at 4.6%, and accused him of resorting to tax terrorism.
In a sharp retort to the attack by Chidambaram, who had termed him the worst finance minister ever, Sinha, who had been a finance minister in the NDA government, said, Chidambaram will have to be reborn to match my record in the finance ministry.
Listing the loopholes in Chidambarams projection, he said the expenditure has been savagely cut and termed it as a mindless reduction of expenditure and accused the tax administration of becoming extortionary by seeking advance tax from taxpayers.