Tax dept goes for friendly image makeover
NEW DELHI: Tax authorities are making a fresh bid to engage with taxpayers as they attempt to present a friendly face and wipe out the ghosts of controversial tax disputes of the past, which attracted global criticism.
Reaching out to the taxpayer, both small and large, the department has lined up several activities to present a new image and also to create awareness about the importance of paying tax as it takes on the battle of deepening the base. “Our tax system has to be friendly with tax payers and that is what we are trying to do step by step,” finance minister Arun Jaitley said, while replying to a debate on black money in Lok Sabha.
He also said there was a misconception that high tax rates lead to higher revenues. “The direct and indirect tax rates have to be brought to reasonable level so that the basket increases and there is no incentive for evasion.”
The Narendra Modi government has taken several measures to reverse the damage that the economy suffered due to a spate of high profile tax litigations and the retroactive tax rules imposed by the UPA government.
On Wednesday, attorney general Mukul Rohatgi advised the government against appealing the verdict of the Bombay high court, which ruled in favour of Vodafone in a transfer pricing case, involving a tax demand of Rs 3,200 crore.
Sources said the government is also unlikely to appeal against another order of the Bombay high court, which ruled in favour of Shell India in the Rs 15,000 crore transfer pricing case.
Earlier this month, the Central Board of Direct Taxes ( CBDT) on Friday issued 12 commandments to its field offices, asking them to stick to appointments, address grievances and avoid unnecessary harassment of taxpayers. They have been advised not to cancel or postpone an appointment, unless unavoidable, especially when a taxpayer is willing to attend a meeting.
The recent trade fair in the capital saw the department pulling out all stops to attract taxpayers to spread its message and shed its stern image. Visitors jostled to get their caricature drawn by one of the department’s ace artistes B Sajjive, an assistant commissioner. A kids zone with an art competition was thrown in as an added attraction. “I have been doing 100-150 caricatures a day,” said Sajjive. The paper on which he draws has a message: “Make India through Tax India.” “This is how the message will spread,” he said.
