New Delhi: Finance Minister Jaswant Singh on December 17 said the government was moving towards a simplified and hassle-free tax system.

"We are bringing in uniform rates and simplification, and to address the problem of discretionary power of authorities, we are working towards elimination of interface between citizens or tax payers and the authorities," Singh said replying to supplementaries during Question Hour in Rajya Sabha.

Singh said it was not so much the problem of multi-tax system, but the issue of multiplicity of tax rates.

Earlier, members expressed concern over increasing harassment of industrialists by tax authorities.

While indirect tax collections account for 6 per cent of gross domestic product (GDP), the direct tax collections is only 50 per cent of that and is pegged at around 3 per cent of GDP, Singh said adding "it should have been the reverse".

"The three great weaknesses of the tax system are the tax administration, discretionary authority of tax officers and the absence of computerisation," he said.

The minister said the discretionary authority of tax officers result in interface between citizens and officers that could lead to unworthy practices.

"I believe there is sufficient policy. What we have to address is to improve tax administration, simplification and computerisation spread," he said.

PTI