The Chelliah Committee recommended in January ______ that the prevailing rates of import duties be rationalised and lowered.
Show answer & explanation
Correct answer: D
Explanation
Correct Answer: Option 4 (1993)
Explanation:
The Tax Reforms Committee, chaired by Raja Chelliah, submitted its final report in January 1993. The committee recommended rationalizing and gradually reducing the prevailing import duty rates to make the Indian economy globally competitive. The Chelliah Committee is considered the foundation for comprehensive tax reforms in India.
Additional Facts
Establishment: The committee was formed in August 1991 by the then Finance Minister, Dr. Manmohan Singh.
Key Recommendations: * Reducing personal and corporate tax rates.
Significantly reducing customs duty.
Adopting the Value Added Tax (VAT) system.
Suggesting the introduction of a service tax.
Raja J. Chelliah: He is also known as the 'Father of Indian Tax Reforms'.
Possible questions for the upcoming exam
On the recommendation of which committee was the 'Service Tax' implemented in India? (Answer: Chelliah Committee)
What is the 'Narasimhan Committee' related to?
(Answer: Banking sector reforms)
Who is the chairman of the GST Council?
(Answer: Union Finance Minister)