India, OECD to discuss tax reforms today
At a time when the government is accelerating efforts to strengthen the country's taxation system , India and rich countries' club OECD will deliberate on challenges to international tax rules on Monday. Co-operation in global tax matters have gained prominence , especially after the G-20 crackdown on tax havens, which are being used to park unaccounted money worth billions of dollars. Finance Minister Pranab Mukherjee will address a seminar on 'Adapting Tax Systems and International Tax Rules to the New Global Environment: A Shared Challenge for India and OECD' .
The grouping's Secretary General Angel Gurria , who will be participating in the seminar, is also likely to meet the top government officials during his India visit this week. Paris-based Organisation for Economic Cooperation and Development (OECD) is a 34-member grouping of mostly developed nations, including the US and Germany. OECD, whose members account for over 60% of the global output, also plays a key role in setting the global tax standards . India and OECD are likely to discuss a range of issues, especially related to reducing tax complexity and boosting overall tax administration.
New Delhi is reviewing Double Taxation Avoidance Agreements (DTAAs) with various countries besides entering into Tax Information Exchange Agreements (TIEAs) with many jurisdictions that are considered to be tax havens. Apart from working on ways to bring back black money stashed abroad, the Government has also embarked on ambitious tax reforms, both on direct and indirect tax fronts. "The introduction of the Direct Taxes Code (DTC) and the proposed Goods and Services Tax (GST) will mark a watershed .
These reforms will result in moderation of rates, simplification of laws and better compliance," Mukherjee had said while presenting the Budget for 2011-12 . While DTC is scheduled to become effective from April 1, 2012, a constitutional amendment bill on GST was introduced in Parliament earlier this year. On June 14, OECD would release its Economic Survey of India. The report would focus on the need to continue with market-orientated reforms to ensure strong and sustainable economic growth.
