Tax reforms key to economic justice: Governor

Governor Shiv Pratap Shukla on Friday said tax policy plays a decisive role in mobilising national resources for development, welfare and infrastructure creation, asserting that a robust taxation framework is central to economic justice and good governance.

He was speaking at the inaugural session of a two-day International Conference on “Tax reforms in India: Challenges and prospects,” sponsored by the Indian Council of Social Science Research and hosted at Himachal Pradesh National Law University.

The Governor described the goods and services tax as a historic reform that unified India’s indirect tax regime and strengthened cooperative federalism. An effective tax system, he said, forms the bedrock of social inclusion, accountability and transparency, adding that taxation is not merely a revenue-raising tool but a foundation of trust between the State and citizens.

He noted that post-liberalisation reforms have focused on simplification and transparency, citing schemes such as Vivad se Vishwas as examples of a participatory and trust-based approach to tax administration. Tax reform, he underlined, is deeply intertwined with economics, governance and public policy.

Referring to the Arthashastra, the Governor said taxation should be just, balanced and welfare-oriented, promoting production and shared prosperity rather than overburdening citizens. He termed GST a contemporary embodiment of these principles aimed at inclusive and sustainable development.

Vice-Chancellor Prof Priti Saxena outlined the conference themes, while keynote speaker Prof Nigam Nuggehalli of NLSIU Bengaluru stressed the need to continually adapt tax reforms to evolving economic realities. Conference Convener Prof Girijesh Shukla highlighted digitisation and AI-driven analytics in tax administration and Registrar Prof Alok Kumar delivered the vote of thanks.

The Governor also inaugurated HPNLU’s newly designed litigation lab and a blood donation camp organised by the Youth Red Cross.