New direct taxes code to be unveiled tomorrow: FM

The government has drafted a new tax code, which aims at promoting economic growth with equity, finance minister Pranab Mukherjee told a meeting of tax officials. The new direct taxes code will be put in the public domain tomorrow, he added.

Tax laws should be simple, stable and robust, the finance minister said, adding, the rates should also remain moderate. The current initiative is aimed at this, he said.

He said the government would gradually phase out the multiple tax rates, tax exemptions and deductions to improve tax compliance.

While drafting this code, the best practices in the world have been studied and incorporated, Mukherjee said.

He exhorted tax officials to go through the draft and give their views and suggestions to enable the department to finalise the document for taking it to the parliament in its winter session.

The government, Mukherjee said, is targeting direct tax revenues of Rs4,00,000 against the budget estimate of Rs3,70,000 crore in the current financial year (2009-10).