Will CBDT and CBIC merge? Finance ministry has given answer

New Delhi: In 2016, the Tax Administration Reform Commission (TARC), headed by Parthasarathy Shome, put a proposal before the government. Under this proposal, CBDT and CBIC were advised to merge. For the last few days, it was discussed that the government is considering the recommendation of the Commission.

However, now the Finance Ministry has given a statement that there is no intention to merge CBDT and CBIC. The ministry said in a statement, "The government has no proposal for merger of the two boards constituted under the 'Central Board of Revenue Act, 1963'". According to the ministry, the TARC report was discussed in detail. But the government did not accept the recommendation of merger. According to the statement of the Finance Ministry, the government had also assured in this regard in response to the question asked in Parliament. This fact was put before the Government Assurance Committee in 2018. Action reports on the recommendations of TARC are present on the website of the Department of Revenue and it clearly states that this recommendation has not been accepted.

TARC was formed in addition to reviewing the use of tax policies and legislation to make recommendations regarding necessary reforms in income tax administration. The Commission gave 385 recommendations. Out of which 291 belonged to CBDT and 253 belonged to CBIC. CBDT and CBIC are direct and indirect tax policy-making bodies.

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