Tax policy debate must go beyond sectoral interests: FM Sitharaman

Sitharaman was speaking at the Eighth International Tax Conference on 'New Age Taxation' here organised by the International Tax Research and Analysis Foundation

Union Finance Minister Nirmala Sitharaman on Wednesday said tax policy discussions must look beyond sectoral interests and focus on the larger requirements of India's economy, including creating a system that is fair, predictable and supportive of investment and innovation.

Speaking at the Eighth International Tax Conference on 'New Age Taxation' here, Sitharaman said tax reforms undertaken in recent years were aimed at simplifying compliance, reducing litigation and providing greater certainty to taxpayers. The event was organised by International Tax Research and Analysis Foundation.

"A mature tax policy debate must go beyond sectoral consideration," she said, urging tax professionals to look beyond their immediate interests and consider the wider consequences of their recommendations.

Sitharaman said the government had rationalised provisions relating to Tax Deducted at Source (TDS) and Tax Collected at Source (TCS), raised thresholds and reduced unnecessary criminal consequences, with the objective of making voluntary compliance easier.

"The philosophy is simple: make voluntary compliance easier and reserve enforcement capacity for cases that genuinely require it," she said.