New Delhi, Jan 02: Charting out a 10-point strategy for an 'efficient and effective' tax system in the country, FICCI has suggested simplified tax laws and procedures, framing of a long term fiscal policy for a period of five years, widening of tax base and continuation of tax incentives.
In its pre-budget memorandum, FICCI said "there is a need to instill some essential attributes in the tax systems which include simplicity, stability, equity, efficiency, neutrality, flexibility, progressiveness, acceptability and revenue elasticity."

Suggesting that the government frame a long term fiscal policy for five years, FICCI said "the said policy will impart a definite direction and coherence to the sequence of annual budgets."

It said that effective coordination of different dimensions of economic policy - fiscal, monetary, industrial and trade policy - will be facilitated by a long term perspective to policy making.

FICCI suggested modification and simplification of income tax 'Saral form' and said the concept of index in principle should be introduced for all monetary limits prescribed under the various provisions of the Income Tax Act.

FICCI also sought a growth and saving oriented taxation while stating that tax reforms should not lead to significant revenue loss. Bureau Report