The Wipro chairman Azim Premji on Tuesday stressed the use of technology to make voluntary tax submission easy. “Technology can play a key role in significantly increasing the ease of voluntary tax compliance and collection,” said Premji.

“Technology adoption by Income tax department has made it fastest and efficient. Technology effectively cut down on face time with officers for routine and mundane activities. Today, the front end of the compliance process is fully automated and back-end processes are also expected to join the bandwagon with same pace and efficiency. Further, the department must look at integrating with downstream activities of dispute resolution and appellate procedures, the Wipro chief said while speaking at 158th Income Tax Day Celebrations organised by Principal Chief Commissioner of Income-tax for Karnataka and Goa region.

“Tax to GDP ratio in India is about 16 per cent, including state taxes, whereas in many developed countries it is around 35-40 per cent. It is imperative that India’s tax-GDP ratio also climbs substantially, so that country’s public social investments can rise to the levels that are required. This includes public investment in education, health, social security, and betterment of the poor and needy. It is the expansion of tax base, which would enhance the ratio, rather than higher rates,” Premji further said.

Emphasising the need for quick reforms, he said, “I think there is clarion call in the country to enhance the pace of Tax Administrative reforms. It is to be acknowledged that tax administration cost as a percentage to total tax collection is one of the lowest amongst the OECD countries and that is commendable. However, revenue productivity would be higher if this tax administration cost can be directed towards increasing the tax base rather than applied in wasteful and repetitive litigation.”

Karnataka and Goa region ranks third in the Country on tax collections.