This refers to A K Bhattacharya's column "Leaving a mark on the Budget" (Raisina Hill, February 9). The author has suggested that the responsibility of meeting the revenue target should not be on the tax department. He has rightly pointed out that it would prevent aggressive tax collection efforts. With an unachievable revenue target, officers are taking coercive steps such as rejecting refund claims routinely and passing adverse orders against taxpayers, and forcing them to part with tax, which will ultimately be refunded but after a lot of harassment. As the author has appropriately concluded, the coercive attitude of tax officers leads to adversarial relationship with the taxpayers. While he has not pointed out who will then monitor the tax collection, it is obvious that it will remain with the senior officers of the revenue department, without making a fixed target.
Being an ex-insider, let me point out that many years back, say, in 1960s and 70s, that was the situation. Senior officers used to monitor tax collection but not treat it as a burden to reach the target. An analysis used to be made in the periodical Budget meetings as to why the fixed target could or could not be met. Accordingly, the targets were also revised. There was no pressure on the officers to somehow reach the target. We used to be guided by only two considerations, right or wrong. There was no third consideration namely, the Budget target. This erstwhile situation should be brought back by a clear statement to that effect in this Budget. It will also make the situation investment-friendly since there will be no animosity with the Department.
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Being an ex-insider, let me point out that many years back, say, in 1960s and 70s, that was the situation. Senior officers used to monitor tax collection but not treat it as a burden to reach the target. An analysis used to be made in the periodical Budget meetings as to why the fixed target could or could not be met. Accordingly, the targets were also revised. There was no pressure on the officers to somehow reach the target. We used to be guided by only two considerations, right or wrong. There was no third consideration namely, the Budget target. This erstwhile situation should be brought back by a clear statement to that effect in this Budget. It will also make the situation investment-friendly since there will be no animosity with the Department.
Sukumar Mukhopadhyay New Delhi
Letters can be mailed, faxed or e-mailed to:
The Editor, Business Standard
Nehru House, 4 Bahadur Shah Zafar Marg
New Delhi 110 002
Fax: (011) 23720201
E-mail: letters@bsmail.in
All letters must have a postal address and telephone number