Web Analytics Business News This Week Budget Blues: Follow Canons of Taxation | Business News This Week

Feb 22, 2013

Budget Blues: Follow Canons of Taxation

IN · · Leave a Comment
As a student of economics, it is always fun to read about the canons of taxation in public finance.

Economists do always favor the changes of the fiscal policies and taxation in an economy to keep it fit and healthy.

India is going to witness the union budget for the fiscal year 2013-14 and the taxation is the prime concern for many in the country from individual tax payers to corporates.

There are many canons of taxation or principles of taxation in Indian economy too, alike other economies the world have.

It may be direct tax or indirect tax changes, it is sure to affect the budget of everyone in the country, and thanks to tough job to be done by the finance minister and administrative officers those always aim to minimize the burden of taxation.

When it comes to taxation in the country, the job becomes tougher for them. They need to strike a balance between the sentiments of the people using canons of taxation and fiscal consolidations.

Let’s have a look on the statistics, tax revenue as a percentage of GDP declined from 8.8 per cent in 2007-08 to 7.5 per cent in 2001-12.
canons of taxation
Goods and Services Tax (GST) has been major concern for the economic planners while dealing with the debt consolidation, fiscal deficit and current account deficit.

Will there be rise in indirect tax in India? Will there changes in the income tax-slabs? How much I need to pay as tax? Will the EMI of home loan go up after the union budget?

There are basic questions one has in mind when the person thinks about the budget outcome. On Thursday, the budget session has been stared in Parliament with keynote address by the President of India.

Sine the economy growth rate is lowest in decade around 5 per cent and the fiscal deficit is high, it is obvious that the government would look for more adjustment in the taxes or disinvestments of PSUs.

Interestingly, the government needs to work on the framed rules or canons of taxation simultaneously working on fiscal deficit and adjusting taxation.

In the gloomy situation, there could be chances of higher taxes in India, but there might not be if the government prefers to present a popular budget as the general election will be held in 2014.

Best way to judge economy is to see the cannons on taxation used. 


Post a Comment