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Budget to level playing field for Indian industry

A Special Correspondent

A provision of a level playing field for Indian industry is likely to be a key thrust in the Union Budget for the year 1998-'99.

The government hopes to achieve this by correcting existing anomalies in duties, and include provisions for deferred duty payment for specificied companies (subject of course to revenue safeguards), besides an overhaul of the anti-evasion machinery.

Finance ministry officials indicated that the option of deferred payment would be made available to those companies that have a good compliance record, and would mean that duty could be paid monthly, rather than at every clearance.

Overall, the focus of the revenue proposals is expected to shift from rate changes to procedures.

In order to raise further revenue, the Budget is expected to include proposals for widening the scope of service tax, reintroduction of the income tax surcharge and increase in tariffs on certain items.

Simultaneously, more commodities will be brought under the ambit of the maximum retail price system.

Measures to curb tax evasion are also on the anvil, sources indicated.

A modified version of the Voluntary Disclosure of Income Scheme first introduced by the previous United Front government with P Chidamabaram as finance minister is yet another measure being contemplated to mop up hitherto untapped sources of revenue.

The overall attempt is to make good revenue losses in the accounting year 1997-'98.