Shimla, Feb 27 (PTI) Tax policy plays a crucial role in mobilising national resources for development, welfare and infrastructure creation. An effective tax system forms the bedrock of economic justice, social inclusion and good governance, said Governor Shiv Pratap Shukla on Friday.

Addressing the inaugural session of a two-day International Conference themed "Tax Reforms in India: Challenges and Prospects," at Himachal Pradesh National Law University (HPNLU), Shimla, he described the Goods and Services Tax (GST) as a historic reform that unified India's indirect tax regime and strengthened cooperative federalism.

He said that taxation was not merely a tool for revenue collection but a foundation of trust, accountability and transparency between the State and its citizens, a statement issued here said.

Tracing the evolution of India's tax system since Independence, the Governor noted that major reforms, particularly after liberalization, aimed at simplifying and enhancing transparency in the tax framework.

He also underlined that tax reform is deeply linked with economics, governance and public policy and appreciated the active engagement of scholars and students in deliberating on these critical issues.

Referring to Acharya Chanakya's Arthashastra, he said taxation should be just, balanced and welfare-oriented, ensuring that it promotes production and shared prosperity rather than burdening citizens. He described GST as a contemporary example of such balanced reform aimed at inclusive and sustainable development.

Earlier, the Governor inaugurated the newly designed HPNLU litigation lab and a Blood Donation Camp organised by the Youth Red Cross of the University. PTI BPL MR

GST reform underscores tax policy's role in inclusive sustainable development and strengthening cooperative federalism and accountability. Tax policy is described as the foundation for mobilising resources and promoting inclusive, sustainable development through an equitable tax framework. Goods and Services Tax is identified as a historic unifying reform that simplifies the indirect tax regime, strengthens cooperative federal relations, and aligns taxation with trust, accountability and welfare oriented objectives to promote production and shared prosperity.