IFC, a member of the World Bank group, is helping Bihar simplify tax laws and procedures to reduce compliance burden and encourage small businesses to register as taxpayers, widen tax base and improving business climate.
A Press release said that Bihar has adopted several progressive measures such as a fixed rate of tax for micro and small enterprises with no routine scrutiny, online filing of returns for larger enterprises, simplifying admission of appeals, faster resolutions and refunds.
Widen tax base
IFC has helped the State widen its tax base by bringing about 7,000 micro and small enterprises into the fold. Close to 78,000 businesses have filed e-returns so far, compared to 149 when the project started in 2009.
Through its investment climate advisory, IFC is implementing reforms in business regulation and taxation in many countries such as Yemen, Georgia, Ethiopia, and Lao PDR. In South Asia, IFC is also working in Nepal and Bangladesh to improve the business climate.