In my speech to Parliament on 6th July, 2009 while presenting the Union Budget for 2009-10, I had stated that tax reform is a process and not an event. I had also promised to pursue structural changes in direct taxes by releasing the new Direct Tax Code within the next 45 days for public debate. I am happy to be able to fulfil this promise by releasing the draft Direct Taxes Code along with a Discussion Paper today.
The thrust of the code is to improve the efficiency and equity of our tax system by eliminating distortions in the tax structure, introducing moderate levels of taxation and expanding the tax base. The attempt is to simplify the language to enable better comprehension and remove ambiguity to foster voluntary compliance. The new Code is designed to provide stability in the tax regime as it is based on well accepted principles of taxation and best international practices. It will eventually pave the way for a single unified taxpayer reporting system. It will specially meet the aspirations of our young and professionally mobile population.
I invite all members of the public to go through the draft and share their valuable suggestions with us. I am sure through our collective effort, we will be able to build a concensus and finalize this Draft Code so that we can present it to Parliament in the Winter Session, 2009 for enacting a Direct Tax Code for the 21st Century which will be compatible with the needs of a faster developing economy
