To earn more revenues through tax, Tamil Nadu state Government has to broaden its tax net by covering informal sectors which are growing at tremendous pace, M Vijaya Basker, Assistance Professor of Madras Institute of Development Studies (MIDC) stated.
Basker stated that Government is getting tax revenue only from formal sector which is restricted to limited enterprises and time will come when source of tax revenue would saturated.
On the other hand informal sectors are growing rapidly but they are not covered under tax net.
Government should also make necessary changes in current labour laws which are reducing competitiveness of the lucrative sectors.
Textile industry has been suffering due to stringent labour laws and this is the high time to implement flexible labour laws keeping in mind workers safety also, Basker stated.
marketing@alchempro.com
