New Delhi, Aug 3 (PTI) A parliamentary committee on Tuesday urged the Department of Revenue (DoR) to bring about stricter enforcement and higher compliance to increase tax-to-GDP ratio.

In a report on the action taken by the government, the Standing Committee on Finance, chaired by BJP MP Jayant Sinha, noted that a large part of the GDP is contributed by those who cannot afford to pay taxes and that is the reason for India's tax-to-GDP ratio hovering around 10 per cent.

Whereas, in developed countries, it ranges around 25-28 per cent, Sinha added.

"The Committee, therefore, reiterates that given the underlying constraints in raising tax rates, they expect higher revenues through stricter enforcement and higher compliance," it said.

The committee stated that it concurs with the Department of Revenue's views that tax buoyancy depends on the efficiency of tax administration and measures for additional resource mobilisation through legislative changes. Data analytics is being used to identify potential taxpayers, it added. HRS hrs

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