Mumbai: The Union Finance Minister P Chidambaram today said that Indian centralised tax collection process is the cheapest practice in the world.

Speaking at the inaugural function of the country's third Large Tax Payer Unit LTPU here, Chidambaram said,"The cost of tax collection for the Income Tax Department is the lowest in the world at the rate of 60 paise for every Rs 100 collected as a tax."

Further, with the introduction of the single window LTPU, the cost of collection comes down drastically to 4.5 paise for every Rs 100 collected as tax, Chidambaram said.

He said that the Government is planning to bring all the central tax collection provisions under the single roof of LTPU.

This unit of Mumbai was the third one after Chennai and Bangalore, within a time span of two year and two units in Delhi and Kolkata will be functional by the end of this calendar year.

Source : UNI