BENGALURU: Transparency and accountability will enhance awareness in public of their role in nation-building and help in widening the tax base, Wipro Chairman Azim Premji said on Tuesday.
“Resistance to paying taxes arises because of lack of transparency and accountability in public spending,’’ Azim Premji emphasized while addressing the gathering during 158th Income Tax day celebrations organised at Townhall. He said it is the widening of the tax base, and not higher rates of taxes, which would enhance tax-GDP ratio.
Tax collection is best achieved by voluntary compliance and compliance through enforcement measures like investigation, which yields moderate results. “One of the prime drivers for voluntary compliance will be lower tax rates. Recent changes to enable online assessment process will significantly increase ease of compliance,’’ he said. He also welcomed the Centre’s recent initiatives to reduce corporate tax rates for small and medium enterprises, rationalisation of slab rate for individuals, among others.