New Delhi: A Team consisting of Mr. Ruud De Mooij, Division Chief, Mr. Arbind Modi, Senior Economist and Ms. Li Lui, Economist from the Tax Policy Division of theInternational Monetary Fund (IMF), Fiscal Affairs Department,gave a presentation to the 15th Finance Commission on “resource mobilization over the next five years”, today. Some members of the Finance Commission’s Economic Advisory Council also participated in the discussions, which was chaired by Sh. N.K. Singh, Chairman,Finance Commission.
The discussions were centered around options for improving the tax resources of the general government, with special focus on improving the revenue realization from the GST. It was presented that the current collections are significantly below an estimated revenue frontier for the country, arrived at using robust panel data analysis of comparator countries. It was further discussed that rationalization of the rate structure as well as improvements in compliance and collection efficiency of GST and other taxes can move India much closer to the frontier. Policy options to achieve this improvement were also discussed.