India to host First international Tax Conference

The first international Tax Conference – co-hosted by the Ministry of Finance, Asian Development Bank (ADB) and Organization of Economic Cooperation and Development (OECD) will be held from 2nd July, 2007 in New Delhi. The two-day Conference will bring together, on a common platform, experts from the various countries and India as well as tax officials of the Government of India to discuss tax reforms in different countries.

The Conference provides to the international participants, a unique opportunity of understanding Indian tax reforms as well as to contribute to the process. Changes in the policies in India will have a large overall impact since one sixth of the humanity lives in the country.

In early 1990’s India chose to move to an alternative form of development which relied much more on the market economy and private sector while lessening reliance on the public sector’s control of ‘commanding heights of the economy’. Increasing the size of the cake, has been recognized, is as important as dividing it equitably.

This shift in the Government’s policy entailed several structural adjustments. Rupee was made convertible, imports and exports were liberalized, and manufacturing was freed from ‘license permit raj’. Fiscal reforms - an important element of these adjustments - followed a consistent pattern of moderating rates of taxes, minimizing exemptions, broadening the tax base, easing the procedures and removing the discretionary powers of officers. The result has been a growth in tax revenues, transparency in procedures and a healthy growth of the economy.

After over 16 years of consistent reforms, it is felt necessary to take stock of the fiscal reforms and learn from experts from other countries about experiences in their countries as well as how they see Indian reforms. Such a reflection, would give us a better insight into what India has been doing so far as well as what should be done in future. This Conference would be a success if it achieves this objective.

The two Plenary Sessions at the beginning set the tone for the proceedings of the Conference. The six parallel sessions that follow, focus on a specific topic each. The third Plenary Session gives everyone an opportunity to learn about the conclusions of the Parallel Sessions while the last Plenary Session seeks to chalk out the future course of action.

Apart from the formal methods of interaction, the Conference provides an excellent opportunity for the participants to develop informal contacts and exchange views and information which may also develop some long-time associations. (PIB Press Release)