BIZ-MISTRY-TAXATION

There is a need to bring down the

tax rates from the current high levels as it will help in

improving revenue collection and reduce black money

generation, according to HDFC vice-chairman and chief

executive Keki Mistry.

But he was quick to point out he does not expect any

changes in tax rates soon as the next budget will be a vote-

on-account due to the general elections which are due in

April-May.

There is always going to be a demand from people to

get more benefits, reduce taxes but at the same time the

government of the day has to take into account fiscal

position, Mistry said.

"My personal view is that we really need to bring down

tax rates because whatever little black money generation

happens now is because of high tax rates. If you bring down

tax rates, you bring down the inclination of the people not to

pay taxes," Mistry told reporters on the sidelines of an ICAI

seminar here Friday.

He said lower tax rates will also help in collecting

more money. "We cannot let the fiscal slip too much. The

government has to keep that in mind. It's a close balancing

act," he said.

Mistry expects the full budget, which will be

presented by the new government to give a lot of focus on the

rural economy as it needs a lot of support.

"If a spurt is given to the rural economy, it will

ultimately translate into all-round economic growth," he said.

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