Finance Minister Arun Jaitley and Finance Minister P Chidambaram, along with their team of tax officials, have spent the past couple of days talking about the forthcoming tax reforms.
In an official statement, Jaitji and Chidambe said they have “a clear vision for tax reform and a long-term plan to reform the tax system to create jobs and increase economic growth”.
In its release, the government has said that it has “finally laid the groundwork for the next phase of tax reform, with all the necessary tax relief measures”.
In its statement, the Finance Ministry said that the government is “ready to finalise a detailed reform framework by the end of January” to give the public “a better understanding of the reforms”.
In their official statement released on Friday, the officials of the finance ministry said that they have made an “urgent assessment” of the impact of the GST and said that there are “significant gaps in the existing tax regime that need to be addressed”.
They have also asked for input on the changes that the tax department plans to make.
The ministry has said it will also start a consultation process with the finance department.
The government has also set aside Rs 2,000 crore to address the “unprecedented” increase in income tax.
The government has been targeting this figure in the new year to ensure that all the stakeholders of the tax and tax compliance system, from individuals to businesses, have the best possible information.