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RBI asks govt to come up with long-term tax policy

Reserve Bank of India Governor Bimal Jalan on Monday asked the government to come up with a long-term policy, which would clearly spell out the tax rate structure for 5-7 years well in advance.

"Somehow, we have to move away from large number of changes. We need to have a long-term tax policy for the next 5-7 years, which is stable, adopted through consensus and is more equitable," Jalan said at a seminar jointly organised by the Confederation of Indian Industry and National Council of Applied Economic Research in New Delhi.

To improve tax administration, the RBI Governor said "we have to simplify the rules. I can assure you, if you do that then tax compliance will improve, corruption will be reduced and scrutiny will also come down."

He asked the industry representatives and NCAER to suggest ways to improve tax administration.

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