What Vice President Venkaiah Naidu said about simplifying the tax system
Vice President M Venkaiah Naidu on Friday called for further simplification of the tax system to promote voluntary compliance and reduce litigation.
Appreciating the government’s efforts to eliminate complex and cumbersome processes, Vice President Naidu stressed the need to intensify efforts to create a stable, user-friendly and transparent tax regime in the country.
Addressing the Farewell Ceremony of the 74th Batch of Indian Revenue Service (Income Tax) at the National Academy of Direct Taxation (NADT) in Nagpur, the Vice President observed that technology can be a great catalyst in our effort to create a transparent and taxpayer-friendly administration.
“Harnessing digital technology is crucial for financial inclusion, ease of service delivery and plugging leaks from various social protection schemes,” Vice President Naidu said.
Observing that the country expects a high standard of efficiency and integrity from all public servants, the vice president urged officers to set high standards and improve the system to make a positive difference in lives people.
“We are not content with the status quo. We want to convert our Swaraj into Suraj or good governance,” Vice President Naidu stressed.
Recognizing the important role of the Indian Revenue Service in nation building through tax collection, Vice President Naidu wanted them to demystify tax laws and procedures so that tax compliance becomes the norm and that citizens pay their taxes on time, voluntarily and effortlessly.
Citing a Mahabharata analogy, the Vice President said that “a ruler should collect taxes from the people in the same way as the bee extracts nectar from flowers without harming the flower itself.”
Calling effective tax administration the foundation of national development and one of the pillars of good governance, the Vice President stressed that “tax collection must increase, but it must be done in a transparent and user-friendly manner, not arbitrarily. “
Stressing the need to minimize the negative impact of taxation on taxpayers, Vice President Naidu said that “if taxpayers continue to grow in their respective productive activities, national GDP and tax revenue will continue to grow.”
Referring to several tax reforms in recent years, such as the emphasis on litigation management to avoid repetitive appeals, a faceless regime and the adoption of the Taxpayers Charter, the Vice President commended the CBDT for introducing these far-reaching policy measures. “I firmly believe that the interaction between taxpayers and tax collectors should be characterized by a spirit of trust, transparency and mutual respect.”
Vice President Naidu called taxes not only a source of revenue for the government, but also an effective instrument to achieve desired socio-economic goals.
Referring to the Prime Minister’s vision for India at 100, he called on everyone to work towards making India a developed, prosperous and happy society in the years to come.
Urging young officers not to become overwhelmed by the challenges and difficulties encountered in carrying out their duties, Vice President Naidu wanted them to be adept at seeking solutions through consultation and learning from best practices in worldwide. “You have to be receptive to new ideas and ready to listen and absorb,” he stressed.