New Delhi, Oct 3
NITI Aayog CEO B.V.R. Subrahmanyam on Friday released the first working paper on tax policy, stressing that a stable, certain, and predictable tax system is critical for boosting investment, creating jobs, and driving India’s economic growth.
Speaking at the release, Subrahmanyam said that uncertainty in tax laws discourages businesses and investors.
“Uncertainty is not good for investment. Uncertainty is not good for citizens. People want stability, predictability, uniformity, and transparency in taxation,†he said.
He pointed out that tax laws that are vague or open to multiple interpretations create confusion, disputes, and litigation.
This not only affects businesses already in India but also discourages new investors from coming in.
“If a law can be read in different ways, it means taxes are applied differently. This leads to disputes and drives people away. What investors want is certainty,†he added.
The new tax policy working group has been formed with experts from government departments, tax authorities, and outside specialists.
The group will prepare detailed papers on simplifying tax laws, making compliance easier, and ensuring that India’s tax system is ready for the future.
Subrahmanyam also highlighted recent reforms, such as the introduction of GST 2.0, which simplified tax rates.
He said the government is working to rationalise tax processes further and reduce unnecessary complexities.
For example, issues like multiple TDS rates, complicated filing processes, and overlapping provisions are being reviewed to make the system more business- and citizen-friendly.
He said India, which is moving towards its vision of becoming a developed nation by 2047, needs a modern and transparent tax framework.
“If India wants to attract more FDI and create jobs, we must ensure investors know what to expect. A predictable tax system will help them plan with confidence,†he noted.
The CEO also underlined that reforms will not just focus on tax rates but also on processes.
“Most people are law-abiding and willing to pay taxes. The problem arises when rules are unclear or processes are too complicated. By making taxes simpler, compliance will automatically improve,†he said.
Calling the report “a step forwardâ€, Subrahmanyam said that if adopted, the recommendations will bring greater certainty and confidence for both Indian businesses and global investors.
“This is essential for India to sustain rapid growth and achieve its 2047 development goals,†he mentioned.
- IANS
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