NEW DELHI: Growth means change and pro-active change does involve taking calculated risks for the greater good. Consider, for instance, policy change and reform, which is key to India sustaining the economic growth momentum. The Budget needs to draw up a road map for tax reform and attendant operational changes in a vital sectors like banking and financial services.
As the recent high-powered committee on making Mumbai an international financial centre emphasised, we have indeed dismantled an “autarkic license-permit raj” in industry and trade; but we need to do it again in finance. It would step up efficiency and productivity across the board, and lead to better allocation of resources.
The way ahead is to have a tax regime in finance that does away with cascading rates, including stamp duty, registration duty and the securities transaction tax. Instead, what’s required is sound tax design for a goods and services tax (GST) in finance.
As the recent high-powered committee on making Mumbai an international financial centre emphasised, we have indeed dismantled an “autarkic license-permit raj” in industry and trade; but we need to do it again in finance. It would step up efficiency and productivity across the board, and lead to better allocation of resources.
The way ahead is to have a tax regime in finance that does away with cascading rates, including stamp duty, registration duty and the securities transaction tax. Instead, what’s required is sound tax design for a goods and services tax (GST) in finance.
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