In a bid to overhaul tax administration, Indian Prime Minister Narendra Modi announced a revamp of the appraisal system for officers, besides backing a new method of scrutiny of returns that spares taxpayers the need to visit offices.
“We are also taking several steps to serve the honest taxpayer better... This (the new appraisal system) will deter corruption and also motivate officers to pass correct orders. When fully implemented, these changes, namely online scrutiny, and changes in performance appraisal have transformative potential,” Modi said at the Delhi Economics Conclave. The statement seemed to be targeted at investors, many of whom still complain about the need to tone up the tax administration. In his address, Modi suggested that things are already improving. For instance, this year, 91% of the electronic returns had been processed within 90 days compared with 46% last year, with nearly 90% of the refunds issued during this period. “I have asked the income tax department to move to a system where not only returns but also scrutiny is done without having to go to the office. Queries could be raised and answered online or by e-mail. There should be a visible electronic trail of what is pending with whom, where, and for how long,” Modi told the conference.
Modi said that his government had taken a series of steps and the economic environment had improved significantly in the last 17 months. “These are reforms that you are probably aware of. But our reforms are far broader, and far deeper, than is generally recognised,” he said in what was seen as a response to his critics. At the same time, he made it clear that reforms need to benefit the common man, should go beyond the common notion and be inclusive as opposed to grabbing “headlines in pink papers.” “Reform is that which helps all citizens, and especially the poor, achieve a better life... In short, reform is not an end in itself. Reform for me is just a way station on the long journey to the destination. The destination is transformation of India. Therefore, reform to transform. And reforming to transform, is a marathon, not a sprint.”
