N.K Singh, 15th Finance Commission Chairman has clarified that India’s tax revenue is below potential by 4 percent of Gross Domestic Product (GDP).
At the CSEP-IMF event Singh said, “At least 4 percent of GDP is a lost potential in terms of India’s revenue and if some part of it could be realized it would be help greatly in aligning not only health needs, but find a convergence between sustainable development and medium-term fiscal policy statement.”
Further, there is a need to redo direct and indirect taxes and bring about deep reform in the revenue system, he added.
However, the 15thFinance Commission report, tabled in Parliament in February, had highlighted that the actual tax collections by the center during the last ten years, on average was 4 percent less than what was budgeted.
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