Inaugurating a post-budget workshop organised by the centre of tax communication and studies (CTCS), Kumar asked the tax-collectors and tax-payers to work together for the success of initiatives taken in the budget towards simplication and rationalisation of the tax structure.

He added that simplification of central excise procedures and rationalisation of the duty structure in the current budget were steps in the right direction to achieve globalisation.

Kumar pointed out that with reduced number of checks and controls, industry was expected to behave in a responsible manner in payment of duties.

Kumar, however, said that the tax departments needed to plug loopholes in their functioning to achieve better results.

The minister said that the government had taken pathbreaking initiatives in the budget for 2000-2001 to curb subsidies and give fillip to sectors like entertainment and power. Kumar said that reactions to the budget were of wide variety and it will take time for the people to realise the positive aspects of the current budget.

Chairman of the Central Board of Excise and Customs (CBEC) SD Mohile said the change in the definition of valuation for payment of excise duty in the budget will ensure simplification.

He said the industry's viewpoint would be taken while formulating the wordings for transaction value which will be used for valuation now.

The extension of the provision for payment of duty after clearance will benefit the industry, he said. Mohile pointed out that reduction of duty burden on steel and plastic in the budget will bring down prices of various items which have these two as raw materials.

Speaking at the workshop, OP Srivastava, member (collections) of the Central Board of Direct Taxes (CBDT) said that the direct tax proposals in the budget will put the board in a position to achieve the growth rate target of more than 25 per cent in revenue realisation in 2000-2001 over 1999-2000.Srivastava said that the direct tax proposals in the current budget were formulated keeping in mind the stability of the fiscal laws. He added that the rates had not been changed this year as regular tinkering with the tax rates had created problems for both the tax payers as well as the tax collectors.

He said the extension of one-by-six scheme in the budget to 79 more cities will further increase the number of tax payers in the country and will ensure enhanced revenue collection as the scheme had proved to be an effective tool for widening the tax net.

He added that the decision to raise the rate of taxation on dividends from 10 per cent to 20 per cent in the budget was justified as most of the tax payers falling under this provision belonged to the 20 per cent bracket.