Niti Aayog calls for a modern tax framework for trust-based governance

It said a paradigm shift towards a modern, predictable and citizen-centric tax system is crucial for enhancing the ease of doing business and ease of living.

Niti Aayog on Friday pitched for establishing a modern tax framework for trust-based governance, including voluntary compliance, transparency, and fairness.

Phot for representation(Pexel/For representation)

The Aayog, in a working paper titled 'Towards India’s Tax Transformation: Decriminalisation and Trust-Based Governance', further said the Indian tax framework should be aligned with the Viksit Bharat@2047 vision and principles of growth, inclusion and trust.

It said a paradigm shift towards a modern, predictable and citizen-centric tax system is crucial for enhancing the ease of doing business and ease of living.

According to the Aayog, the government should focus on platforms like "Transparent Taxation – Honouring the Honest" and the Jan Vishwas Act (2023), which aim to reduce the compliance burden.

The paper suggested that the assessment of criminal provisions should be based on foundational principles to assess the legitimacy and necessity of criminal provisions in the Act.

The Aayog also pointed out that offences must be clearly defined, fit for purpose and periodically reviewed.