Cabinet approves direct tax bill

source (Reuters) - The cabinet on Thursday approved a bill to simplify the country's archaic direct tax laws, law minister Veerappa Moily said.

The direct tax code bill is a key reform aimed at widening the tax net and increasing revenues for the central government.

The government will seek approval on Monday from parliament where the bill is expected to go through as the measure enjoys broad political support.

The proposed tax reform will cut tax rates to bring in more people and companies under the net, phase out profit-linked exemptions for firms and replace them with investment-linked incentives.