Tax reform

The government has made definite progress on the goods and services tax (GST) in the last few months and it will almost certainly be rolled out from April 1, 2016. Now the market would look for details on it: with respect to goods that will come under it (or be exempted) and importantly, what the crucial revenue-neutral rate -- which has the potential to make or mar the tax reform -- would be.There are other issues that corporates are looking forward to: such as more clarity on MAT on special economic zones while foreign investors would look for a word on the postponement of controversial GAAR (which for now is on track for April 2016) or a conclusive rollback of retro tax amendment – even though Jaitley has vowed to stay as far away from it as he can.The Budget would also confirm whether the present government has altogether decided to put the direct tax code reform pursued by its predecessor in cold storage – which by all accounts it has – and whether it some plans of its own with respect to direct tax reform.