The Finance Commission, which makes recommendations on sharing of tax revenues by the Centre and States, has suggested a new path for fiscal prudence in its report submitted to President Pratibha Patil on Wednesday.
The finance ministry on Wednesday said the tax burden on people will come down by 25-30 per cent with the introduction of the proposed Goods & Service Tax, which seeks to subsume various levies like excise and VAT.
Buoyed by the healthy growth in advance tax collection, the Government on Tuesday said the revenue realisation during the current fiscal may exceed the budgetary target notwithstanding low indirect tax collection.
The advance tax collection from India Inc rose 20 per cent during the first nine months of the current fiscal compared to the same period last year, with automobiles, consumer goods and metals leading the pack.
Despite the economic recovery, the government`s direct tax collections increased by a marginal 3.7 percent to Rs 1.83 lakh in the first eight months of this fiscal compared to the same period a year ago.