New Delhi: India needs competitive tax rates to become an attractive manufacturing hub that will help create jobs and boost economic growth, Finance Minister Arun Jaitley said Wednesday.
"Manufacturing is not only extremely important activity but it is one activity with its spiral effect on the economy which also creates the largest volumes of job, and a tax on that manufacturing adds to the government revenue.
"In order to keep manufacturing competitive we have to keep our rates competitive and therefore have to occasionally vary those rates...," he said at the Investiture Ceremony 2016 and Annual Central Excise Custom Day Function.
He said the revenue is the lifeline of governance and if governments have no adequate revenue, it becomes almost impossible for government to function.
"As the economies grow, not only the width of revenue grows but the expectation of people for greater level of developments, evolution of society as welfare state also grows. Manufacturing in any growing economy has a very vital role," Jaitley said.
He said the efficiency of excise department is critical to make sure that "what is due from each producer or manufacturer to the country is realised by us (Government)".
He further said because of some "clever manufacturers" who try to avoid paying right taxes, it was necessary that the excise department remains vigilant, uses intelligence, and has a keen technological know-how with the highest level of integrity and professionalism.