July 07, 2020: The proposal to merge the two tax wings is back on the table along with plans for a massive downsizing as per reports.
The government is considering a proposal to merge the Central Board of Direct Taxes (CBDT) and Central Board of Indirect Taxes and Customs (CBIC) as part of cost-cutting efforts amid revenue loss, Business Standard reported.
The direct and indirect tax boards are looking at job cuts and freezes on new jobs along with a proposal for a merger.
If approved, the merger would follow massive downsizing at all levels including a freeze on hiring for the Indian Revenue Service (IRS), it said.
Furthermore, the government will also reconsider filling existing vacancies. The merger will also lead to changes in retirement rules and cutting down on employee allowances. Various job categories may be merged while revenue officers may be shifted to other departments, it said.
The idea of merging both the boards has been suggested on previous occasions. The Tax Administration Reform Commission had suggested the move in 2014. The CBIC was then called the Central Board of Excise and Customs.
The idea had been suggested in 2011 by then Union Law Minister M Veerappa Moily. He had suggested to the then Finance Minister Pranab Mukherjee to merge CBDT andCBEC for tackling black money effectively as per reports. The IMF and the World Bank have encouraged such thoughts on integration on multiple occasions as per reports.
Currently, the two boards function independently in terms of deciding how much to spend on tax generation. The budgets are managed by the Department of Revenue Besides.
Source: Business Line
