" 10% , sure shot .. there is going to increase in gold smuggling " told my collegue , as FM announced increase in import duty of gold from 5%. we ,were at Conference hall, listening to Budget speech. This is an annual event in every tax dept. offices as tax proposals will have bearing on our work in the coming year.
This is more important in custom Houses, where our assessments will be based on the rates announced during Budget presentation from very next day. ya ! you can ask me .. who gave you authority to impose the new rate, when it is yet to be passed in parliament ? .. provisional collection of taxes act gives us authority, so as to avoid manipulation. so every one was tallying, what went up ? what down ? changes ?
shakthi messaged me " tell me ! this budget is good or bad " , I am sure, I am not macro economist or tax policy maker. I am just a novice tax administrator, leave alone tax policy.
Budget is a annual financial statement for the country. Its a big document containing briefly balance sheet, expenditure proposal, tax proposal, some economic reforms, amendments, fiscal health and so on. To read & understand only ,It needs some expertise., leave alone its implications.
But, Having spent two years in training and nearly an year in field, I just tried to give a try only in indirect tax proposals. It comprises of Customs, Excise duty and service tax.Its called so , because its indirectly paid by the consumers.
FM in recent years is relying on indirect tax for mopping up the revenue.This will have direct implication on prices and thus inflation. May be, I think Perception is more important. Income tax collected directly from us pinches ( apparently), than the indirect tax which is paid indirectly by us.( 10 % vs. 12% ) ... Income tax is said to be progressive in nature. why progressive ? ...
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