P Chidambaram's tenure as finance minister in the last 54 months saw the Indian economy register 9 per cent plus growth in three consecutive years that resulted in buoyant tax collections.
But record-high crude oil prices and populist schemes announced by the Congress-led coalition government eroded many gains achieved in the first four years.
Chidambaram's initiatives on the tax policy front resulted in revenue collections posting a compounded annual growth rate (CAGR) of 22 per cent.
He made tax administration more efficient and introduced new taxes like the fringe benefit tax, the cash withdrawal tax and the securities transaction tax. He also widened the service tax net to cover many more services.
Text: John Samuel Raja D
Image: P Chidambaram, former finance minister and the current home minister. | Photograph: Manan Vatsyayana/AFP/Getty Images
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