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Jaswant hints at more tax reforms, exemptions

Finance Minister Jaswant Singh on Saturday gave broad hints of more tax reforms and exemptions by declaring that it would be the government's endeavour to make changes in the tax system to make it people-oriented but without compromising on the country's growth rate.

The finance minister had on July 30 announced incentives for small investors.

"We will endeavour to make the tax system people-oriented while ensuring at the same time that the rate of growth is not reduced," Singh said addressing the BJP National Council meeting in New Delhi.

Apparently referring to the exemption limit, the newly appointed finance minister in his brief speech said that "as and when it is possible, it will be increased."

He said since the Budget has already been passed by Parliament, it was not wise to bring about any "fundamental changes" in its provisions, but the government had recently re-examined certain aspects such as the 5 per cent service tax on life insurance premium, which has since been withdrawn.

The finance minister dismissed as 'wrong' the Congress criticism that his predecessor Yashwant Sinha was shifted from the ministry as he could not handle the economy properly.

Singh declared that the government would ensure within two months that there was no shortage of funds or foodgrains for states affected by drought.

Stating that over-centralisation will not succeed in drought relief, he said while the Centre had allotted 50,000 tonnes of foodgrain for drought management, only 30,000 tonnes have been lifted so far.

Singh attributed the economic slowdown to bankruptcy of several companies in the United States and the drought situation in the country, but asserted the economy was strong and the GDP rate would be among the highest in the world.

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