The revenue augmenting strategy encompassed moderating the tax rates and broadening the tax base through expansion in the scope of taxes, specifically service tax, removal of exemptions, some improvement in tax administration with a focus on arrears recoveries.
In fact, several market participants have laid much of the blame for the prevailing bank profitability concerns on monetary policy, in particular stressing the negative effects of low interest rates on net interest margins. But this perspective is partial. The interaction of monetary policy and bank profitability Net interest margins have indeed declined in recent years in the wake of low policy interest rates.