UPSC Prelims 2003 Q87: Indian Economy – Taxation
The Kelkar proposals which were in the news recently were the
- (a) recommendations for reforms in the power sector
- (b) recommendations for tax reforms
- (c) guidelines for the privatisation
- (d) guidelines for reducing vehicular pollution, and the promotion of CNG use
Answer: (b) recommendations for tax reforms
Explanation
Kelkar proposals
| Option | Link |
|---|---|
| Recommendations for tax reforms | Yes — Task Force on Direct and Indirect Taxes under Vijay Kelkar |
| Power sector reforms | No |
| Privatisation guidelines | No |
| Vehicular pollution guidelines | No — that is the Mashelkar Committee |
The Kelkar proposals were recommendations for tax reforms.
Answer: (b) recommendations for tax reforms.
Why each option is right or wrong
- (a) Incorrect. Power sector reforms were not the Kelkar task.
- (b) CORRECT. Kelkar's Task Force dealt with tax reform.
- (c) Incorrect. Privatisation guidelines were not his task.
- (d) Incorrect. Vehicular pollution was the Mashelkar Committee.
Key point
Kelkar Task Force: direct taxes (2002), indirect taxes (2002); Kelkar Committee on FRBM (2003).
Remember
The Kelkar proposals were on tax reform.
Common mistakes
- Mixing Kelkar with Mashelkar of auto fuel policy.
- Thinking that it dealt with disinvestment policy.
- Forgetting that the reports came in 2002.
Exam tip
Kelkar means tax reform; Mashelkar means auto fuel policy.
Sources
- Ministry of Finance, Government of India — Report of the Task Force on Direct Taxes (Chairman: Vijay L. Kelkar), 2002
- Ministry of Finance, Government of India — Report of the Task Force on Indirect Taxes (Chairman: Vijay L. Kelkar), 2002