Taking forward the call for
deregulation
in the Economic Survey,
FM Nirmala Sitharaman
is seeking to significantly cut red tape and promote
ease of doing business
to achieve India’s aim of becoming a developed country in the coming years.
Govt will now bring up
Jan Vishwas Bill 2.0
to decriminalise over 100 more provisions under various laws, while promising a review of regulations.
She announced a high-level committee for regulatory reforms to “review all non-financial sector regulations, certifications, licenses, and permissions” which will submit its report in a year. “The objective is to strengthen trust-based economic governance and take transformational measures to enhance ‘ease of doing business’, especially in matters of inspections and compliances. States will be encouraged to join in this endeavour,” Sitharaman said.
Besides, to push states, the Centre also announced the launch of
investment friendliness index
. States are already ranked on multiple parameters.
Besides, there are specific proposals. For instance, the Budget has proposed to reduce the number of customs tariff classifications from 15 to 10 to make life easier for businesses. Similarly, there are provisions for time-bound provisional assessment in customs cases instead of keeping it open.
A scheme for determining arm’s length price of international transactions for a block period of three years in line with global best practices. The idea is to streamline the transfer pricing process. There is also a proposal to reduce litigation and provide certainty in international taxation, the scope of safe harbour rules is being expanded.
One of the objectives of significant direct tax reforms announced in the Budget is to improve the ease of doing business, which is seen as a big way to give a further boost to the ‘Make in India’ scheme. “Our govt will facilitate upgrade of infrastructure and warehousing for air cargo, including high-value perishable horticulture produce,” the FM said.
