Aiming to accelerate the revenue base in India, Prime Minister Narendra Modi has asked taxmen to double taxpayer base to 10 crore. Prime Minister was speaking at inaugural session of the two-day ‘Annual Conference of Tax Administrators 2016’ (Rajasva Gyan Sangam event) in New Delhi on Thursday.
Narendra Modi said the tax officers should adopt a “soft and sober” approach in their work, and should not treat everyone as tax evaders. He said people of India are honest by nature and taxmen should try to build a sense of trust with the people to achieve tax collection targets.
He however warned that those evading taxes should be ready to face the “the long arm of the law.”
Prime Minister said five pillars of Revenue, Accountability, Probity, Information and Digitization (RAPID) should serve as the foundation of administration.
“There should be respect for law among all citizens and even fear of the long arm of the law for those who evade taxes,” Modi said.
Prime Minister also emphasized the need to “move towards digitization” for efficient tax administration.
“You should behave like mentors to people, rather than invaders. Don’t presume that every one is tax evader,” Revenue Secretary Hasmukh Adhia quoted Modi as saying in the conference.
Modi said taxmen should set their sights higher, and legitimately aspire to double taxpayers base from 5.43 crore currently to 10 crore.
Modi also talked about generation of black money in Indian economy. According to him, there are only a few black money holders in the country, and tax will come automatically if the system is taxpayer friendly.
In India, 92% of direct tax revenue comes from tax deducted at source (TDS) of mostly salaried people, self assessment taxes and advance taxes.
“If you trust the taxpayer, if you build that bridge of trust between the taxpayer and the system… because people of India are inherently honest, then we will find it very easy to be able to achieve the target and ensure that the trust deficit is fully bridged,” Minister of State for Finance Jayant Sinha said while briefing reporters about the meeting.
Sinha said there are 25 crore households in the country, and if 15 crore agriculturalists are excluded, the remaining 10 crore should come under the tax net. He revealed that 90% of the 5.43 crore taxpayers file their returns electronically and 60% of the refunds are issued within a month.
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