As per Parthasarathi Shome, an advisor to the Finance Minister, India will benefit by opening up the services sector including retail and financial sector, to global competition. This move will make Indian services dynamic, enhance productivity and also help the nation to draw global technology and make it more competitive.
Regarding the tax reforms, he said these are key to bringing down costs, enhancing revenue and efficiency. He also expressed the need of much-awaited measures like Goods and Services Tax (GST) and Direct Tax Code (DTC).
As per Shome, GST will help cut down the cascading effect of taxation and help growth. Similarly, DTC will improve individual and corporate income tax system. Further, the finance ministry is keen on pushing the new tax measures through in the current session of the Parliament, Shome added.
