India will have a tax regime with non-adversarial approach, Finance Minister P Chidambaram today said in an interaction with the media.
He also expressed confidence that the direct tax target for the current financial year will be met despite the negative impact a slower GDP growth is likely to have on tax mop-up.
He hoped for a healthy advance tax collection.
He said the aim is to keep the tax-GDP ratio at 12 percent.
The country has a direct tax collection target of Rs 5.7 lakh crore.
This is the second media interaction after Chidambaram assumed the finance portfolio, which had given rise to hopes that the government may finally kick start reforms.
In his bid to address the difficult fiscal situation of the country, the minister has set up a committee to pen measures on fiscal consolidation.
The Parthasarathi Shome committee, set up to by the prime minister when he was holding the finance ministry, submitted its draft report on the controversial GAAR on Saturday.
The report has suggested holding back the implementation of GAAR for three years.
Experts are expecting the government to accept all the recommendations by the panel.
More From Firstbiz Staff.