Lok Sabha Question No. 195 (STARRED), answered on 2016-07-29
Subject: TARC Report
Ministry: FINANCE
Asked by: DUSHYANT SINGH

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE

## LOK SABHA STARRED QUESTION NO.  *195

## TO BE ANSWERED ON  FRIDAY,  THE 29 TH  JULY, 2016 SHRAVAN 07, 1932(SAKA)

## TARC REPORT

## QUESTION

## * 195. SHRI DUSHYANT SINGH:

Will the Minister of FINANCE be pleased to state:

- (a) the  details  of  the  major  recommendations  made  in  the  first  report  of  the  Tax
- (b)
- (c)

Administration Reforms Commission (TARC); whether the Government is implementing these recommendations, if so, the details thereof and if not, the reasons therefor; whether the Government has created two bodies, a Tax Policy Research Unit(TPRU) and a Tax Policy Council to effectively handle tax policy and related legislation; and

- (d) if so, the details thereof along with the roles of both the bodies?

## ANSWER

## MINISTER FOR FINANCE ( SHRI ARUN JAITLEY )

## A statement is laid on the Table of the House.

## Statement Annexed with the Lok Sabha Starred Question No.195 for 29.07.2016 by Shri Dushyant Singh on TARC Report

- (a) The First TARC report has six chapters - Customer Focus, Structure and Governance, Peoples Function,  Dispute  Management,  Key  Internal  Processes,  Information  and  Communication Technology. Summary  of the recommendation  of the Tax Administration Reform Commission of First report are given below.

| Chapter   | Chapter name                                   |   No. of recommendations |
|-----------|------------------------------------------------|--------------------------|
| II        | Customer Focus                                 |                       11 |
| III       | Structure and Governance                       |                       15 |
| IV        | Peoples Function                               |                       26 |
| V         | Dispute Management                             |                       19 |
| VI        | Key internal Processes                         |                       41 |
| VII       | Information and Communication Technology (ICT) |                       24 |

Details  are available at the website of Ministry of Finance  www.finmin.nic.in .

- (b) Yes,  Madam.    The  Government  is  implementing  these  recommendations  The  Status Summary of other Recommendations of TARC's First Report is given below :-

|                                   |   CBDT |   CBEC |
|-----------------------------------|--------|--------|
| Total Recommendations             |    132 |    136 |
| Accepted and Implemented          |     29 |     36 |
| Accepted and under Implementation |      0 |     54 |
| Under Consideration               |    103 |     46 |

Details of the  recommendations  implemented are available on the website of Ministry of Finance (www.finmin.nic.in) and Department of Revenue (www.dor.gov.in)

- (c) Yes, Madam.   The Government has created two bodies, a Tax Policy Research Unit(TPRU) and a Tax Policy Council.
- (d) The Government has created two bodies, a Tax Policy Research Unit(TPRU) and a Tax Policy Council to effectively handle tax policy and related legislation. The Tax Policy Council(TPC)

under the Chairmanship of Hon'ble Finance Minister has been formed with an aim to having a consistent and coherent approach to the issue of tax policy and having regard for need to have an inter disciplinary approach. The Tax Policy Council will look into all research findings of the Tax Policy Research Unit(TPRU) and suggest broad policy measures for taxation.  The Council  will  be  advisory  in  nature  and  will  help  the  Government  in  identifying  key  policy decisions for taxation. Chairperson, CBDT and Chairperson, CBEC are the Special Invitees in the Tax Policy Council.  The Government has created Tax Policy Research Unit(TPRU) under the  direct  supervision  of  Revenue  Secretary  to  carry  out  the  research  on  the  basis  of empirical data. The TPRU will carry out studies on various topics of fiscal and tax policies referred to it by CBDT and CBEC and will provide independent analysis on such topics, will prepare and disseminate policy papers and background papers on various tax policy issues, will assist TPC in taking appropriate tax policy decisions and liaise with State Commercial Tax Departments. The Tax Policy Research Unit shall comprise of officers from the Central Board of Direct Taxes and Central Board of Excise and Customs as well as economists, statisticians, operational researchers, legal experts.  Member (P&V), CBDT and Member (Budget), CBEC will be the link officers between TPRU and CBDT and CBEC.  The unit will be headed by an officer  of  the  level  of  Chief  Commissioner  at  functional  level  alternatively  from  CBDT  and CBEC for a fixed tenure, who will directly report to the Revenue Secretary.