Formalisation of economy led to tax buoyancy: Revenue secy to HT

Revenue Secretary Sanjay Malhotra supports using technology to improve ease of doing business and prevent tax evasion. The government aims to widen and deepen the tax base without raising rates. Manufacturers are facing duty inversion due to reduced duty on finished goods, making domestically manufactured goods uncompetitive. The government is considering import duty concessions for multinational companies setting up units in India. Tax revenue is buoyant and the government is confident it will meet its revenue targets without increasing tax rates, thanks to better technology, compliance, and formalization of the economy. The government has also announced the withdrawal of old tax demands and is working on a scheme to inform taxpayers when their old issues are settled. The simplified tax regime has received a good response from corporate taxpayers, but its impact on individual taxpayers is yet to be determined.