Budget 2019

FM: Tax rates should be competitive for manufacturing to be competitive

Surabhi New Delhi | Updated on January 20, 2018 Published on February 24, 2016
Finance Minister Arun Jaitley. File Photo

Finance Minister Arun Jaitley. File Photo

Ahead of the Union Budget 2016-17, Finance Minister Arun Jaitley on Wednesday said that to keep manufacturing competitive, tax rates also have to be kept competitive.

“...we have to keep our rates competitive and therefore, vary the rates occasionally," he said at the Central Excise Day and Investiture ceremony.

The Minister further noted that manufacturing has a very vital role in a developing economy as it has a "spiral effect" on growth.

Jaitley however, noted that the role of tax officials in such a scenario becomes important to ensure that the dues from each producer and manufacturer of the economy is realised.

Addressing the event, Minister of State of Finance Jayant Sinha also underlined the importance of the government's Make in India campaign that will lead to job creation.

"In this regard, the government has rationalised duties and levies have been reduced," he said but said policies also need to be implemented well.

Meanwhile, Najeeb Shah, Chairman, Central Board of Excise and Customs expressed hope that the government will exceed the Budgeted target of ₹ 2.28 lakh crore for central excise duty collections this fiscal. "By January 31, collections had already touched ₹ 2.24 lakh crore," he said.

Published on February 24, 2016
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