North Block gets into pre-Budget mode

Written by fe Bureau | Updated: May 31 2014, 06:19am hrs
Minister of state for finance Nirmala Sitharaman discussed with senior officials possible ways of augmenting tax revenue, trends in revenue collection and sectors where tax evasion is rampant as the finance ministry started pre-Budget meetings.

Officials of the Central Board of Direct Taxes and the Central Board of Excise and Customs and revenue secretary Rajiv Takru briefed the minister about the various issues that could be immediately addressed in the new governments first Budget.

Sources said one challenge is to widen the tax base by reducing tax exemptions and checking tax evasion as there is little leeway for an increase in tax rates or for introducing new levies in an economy that badly needs a strong policy boost by way of quick approvals and lower-cost capital.