To reduce budget deficit, it is saving every rupee that P. Chidambaram has committed. This very commitment is expected to be met in the India Budget 2013. One of the measures towards meeting this objective is certainly withdrawing of tax incentives which have outlived their purpose. Incentives are the loss of revenue caused by the difference between prescribed rates in general and effective rates of taxation. Of course, incentives and exemptions are measures implemented to defuse inflation, promote exports, and benefiting backward areas.
Total loss from taxation is estimated at 936 billion rupees including 148 billion rupees from the corporate sector, 284 billion rupees from individual tax payers from savings incentives, 4.35 trillion rupees (major loss) from excise and customs; firms are no exception. Effectiveness of all incentives should be reviewed. Change of non-effective incentives is suggested while those no longer necessary should be withdrawn.
The above post on India Budget 2013 is based on expert opinion by D H Pai Panandiker, President, RPG Foundation. You can read the complete article here -
http://blogs.reuters.com/india-expertzone/2013/02/13/union-budget-2013-need-to-review-tax-incentives/
Total loss from taxation is estimated at 936 billion rupees including 148 billion rupees from the corporate sector, 284 billion rupees from individual tax payers from savings incentives, 4.35 trillion rupees (major loss) from excise and customs; firms are no exception. Effectiveness of all incentives should be reviewed. Change of non-effective incentives is suggested while those no longer necessary should be withdrawn.
The above post on India Budget 2013 is based on expert opinion by D H Pai Panandiker, President, RPG Foundation. You can read the complete article here -
http://blogs.reuters.com/india-expertzone/2013/02/13/union-budget-2013-need-to-review-tax-incentives/
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