Tax-GDP ratio still very low at 9.6 per cent

The ratio was 9 per cent in 2000-01, which was slightly higher from 8.9 per cent in 1999-2000 and 8.3 per cent in 1998-99. ‘‘Concerted efforts ought to be made by the government in this regard,’’ the panel said. In this context, the panel said the government should implement the measures suggested by Vijay Kelkar task force in establishment of a tax information network to identify tax evaders.

The committee also noted the casual approach of finance ministry in setting revenue targets. ‘‘It is a matter of deep concern that budget estimates were not being achieved in regard to collection of income tax, corporation tax, central excise and customs duty,’’ it said. ‘‘Such a serious matter was being taken up by the department casually and instead of making indepth analysis of the reasons of such a shortfall despite putting additional efforts, the targets have become elusive,’’ the Standing Committee said. Although the government has come up with a slew of measures to minimise exemptions, broaden the tax base, the panel said: ‘‘if those measures were pursued with due seriousness, there was no reason why the projections made would not be achieved.’’