Text of PM’s address at the launch of ‘Transparent Taxation- Honoring the Honest’
The process of Structural Reforms running in the country has reached a new stage today. Transparent Taxation – Honoring the Honest, this new system of 21st century tax system has been launched today.
The platform has major reforms like Faceless Assessment, Faceless Appeal and Taxpayers Charter. The Faceless Assessment and Taxpayers Charter have come into force from today. While the facility of faceless appeal will be available for citizens across the country from 25th September i.e. Deen Dayal Upadhyay’s birthday. Now, even though the tax system is becoming faceless, it is giving confidence to the taxpayer of fairness and fearlessness.
I congratulate all the taxpayers for this and also congratulate all the officers and employees of the Income Tax Department.
Our focus has been in the last 6 years, Banking the Unbanked Securing the Unsecured and, Funding the Unfunded. Today a new journey is starting in a way. Honoring the Honest — Honoring the Honest. The honest taxpayer of the country plays a huge role in nation building. When the life of honest taxpayer of the country becomes easy, it moves forward, then the country also develops, the country also moves forward.
New arrangements, new facilities, starting today, strengthen our commitment to Minimum Government, Maximum Governance. This is a big step in the direction of reducing the interference of the government from the life of the countrymen.
Friends, today every rule-law, every policy, out of the process and power centric approach is being emphasized to make it People Centric and Public Friendly. This is the use of the new governance model of the new India and the country is getting happy results. Today everyone has realized that short-cuts are not right, it is not right to adopt wrong methods. That round has now gone backward. Now the atmosphere is becoming in the country to do all the work keeping paramount duty paramount.
The question is, how is change coming? Does it just come strictly? Does it come just from punishment? No, not at all. There are four big reasons for this.
First, policy drive governance. Gray policies are minimized when the policy is clear and, therefore, the business has reduced the probability of discovery.
Second, faith in the honesty of the common man.
Third, by limiting the human interface in government systems to technology
Large scale use. Today, government procurement, government tender or delivery of government services, Technological Interface services are being given everywhere.
And fourth, in our government machinery which is bureaucracy, the qualities of efficiency, Integrity and Sensitivity are being rewarded, rewarded .
There was a time when we used to talk a lot about Reforms here. Sometimes some decisions were taken under compulsion, sometimes some decisions were made under pressure, then they were called Reform. Because of this, the intended results were not available. Now both this thinking and approach have changed.
For us Reform means, Reform should be policy based, not in pieces, be holistic and one Reform be the basis of another Reform, make way for new Reform. And it is not as if they stopped by reformat once. It is a continuous, continuous process. In the last few years more than one and a half thousand laws have been abolished in the country.
India was ranked number 134 in Ease of Doing Business’s ranking a few years ago. Today India’s ranking is 63. There are many Reforms behind such a big change in ranking, there are many changes in many rules and laws. Seeing this commitment of India towards reforms, the confidence of foreign investors is also increasing continuously on India. The arrival of record FDI in India even during this crisis of Corona is an example of this.
Fundamental and Structural Reforms were needed in the tax system of India because our system of today was created in the period of slavery and then slowly evolve. After independence, a lot of changes were made here and there, but the character of the largely system remained the same.
As a result, the taxpayer, which is a strong pillar of nation building, which is contributing to lift the country out of poverty, has to be put in the dock. The notice of income tax became a decree. Many people had to go through unnecessary trouble to identify a handful of people who had cheated the country. Where there should have been a proud expansion in the number of tax payers, and where a system of alliances was formed.
Between this discrepancy, the Black and White industry also flourished. This system served to crush the businessmen, the givers of employment and the aspirations of the youth power of the country, rather than honestly.
Compliance is also difficult where there is complexity. At least there should be a law, if the law is very clear, then the taxpayer is happy as well as the country. This work has been done for some time. As of now, GST has replaced dozens of taxes. Arrangements ranging from returns to refunds were made completely online.
The new slab system that has come out has freed the compulsion to unnecessarily collect papers and documents. Not only this, the government used to reach the High Court and Supreme Court on disputes above Rs 10 lakh. Now the limit of cases up to 1 crore rupees in the High Court and up to 2 crores in the Supreme Court has been fixed. Attempts from a dispute like faith to a plan are that most cases should be settled out of court. As a result of this, around 3 lakh cases have been resolved in a very short time.
Along with the complexities of the procedures, tax has also been reduced in the country. Tax is now zero on income of 5 lakh rupees. The tax has also come down in the remaining slabs. We are one of the lowest tax consuming countries in the world in terms of corporate tax.
Our effort is that our tax system should be Seamless, Painless, Faceless. Seamless means that the tax administration should work to solve the problem instead of confusing every taxpayer. Everything from technology to technology to rules is simple. Faceless means who is the Taxpayer and who is the Tax Officer, it should not make sense. These reforms coming into force from today are going to advance this thinking.
So far it has happened that the tax department of the city where we live handles all the things related to our tax. Be it scrutiny, notice, survey or seizure, Income Tax Department of the same city plays the main role of Income Tax Officer. Now this role has ended in a way, now it has been changed with the help of technology.
Now cases of scrutiny will be allocated randomly to any officer in any region of the country. Now as a matter related to the return of a Mumbai taxpayer, then the task of investigating it will not go to the Mumbai officer, but it is possible that he can go to the faceless team of Chennai. And the order that will come out from there will be reviewed by the team from another city, like Jaipur or Bengaluru. Now what will be the faceless team, who will be in it will also be done randomly. There will also be changes in it every year.
With this system, the taxpayer and income tax office will not only get a chance to get acquainted, influence and pressure. All will work according to their respective obligations. The benefit to the department will be that there will not be unnecessary litigation. Unnecessary energy spent in the second transfer-posting will also be relieved. Similarly, along with investigation of tax related cases, the appeal will now be faceless.
The Taxpayers’ Charter is also a major step in the country’s development journey. For the first time in the history of India, the rights and duties of taxpayers have been codified. India has also joined the few countries which have given this level of respect and protection to taxpayers.
The taxpayer is now assured of fair, courteous and rational behavior. That is, the income tax department now has to take care of the taxpayer’s dignity sensitively. Now the taxpayer will have to believe it, the department cannot see it without any doubt without any basis. Even if there is any doubt, the taxpayer is now empowered to appeal and review.
Rights always come with obligations, come with duties. This charter also contains certain requirements from taxpayers. Paying tax for the taxpayer or taking tax for the government is not a matter of right, but it is the responsibility of both. Taxpayers have to pay taxes because the system runs from that, the country can fulfill its duty towards a large population of the country.
With this tax itself, the taxpayer also gets better facilities and infrastructure for progress, for progress. At the same time, it is the responsibility of the government to properly utilize the pie of the taxpayer. In such a situation when the taxpayers are getting convenience and security, the country also expects every taxpayer to be more aware of their obligations.
It is also important to understand the trust of the countrymen, how the impact of this thinking is seen on the ground. Out of all the tax returns in the year 2012-13, scrutiny of 0.94 percent was done. In the year 2018-19, this figure has come down to 0.26%. That is, the scrutiny of the case has reduced by almost 4 times. Scrutiny reduced by 4 times, telling itself how extensive the change is.
In the last 6 years, India has seen a new model of governance in tax administration developing.
We Have, Decreased complexity, Decreased taxes, Decreased litigation, Increased transparency, Increased tax compliance, Increased trust on the tax payer.
Amidst all these efforts, the number of people filing income tax returns has increased by about two and a half crores in the last 6-7 years . This growth is huge but we cannot deny that even then it is very less in the 130 crore country. In such a large country, only one and a half crore out of 130 crores associates collect income tax. I would urge them will also urge the country today who are able , to run different organizations vary by industry and trade , will they requested. We all need to reflect on this , the country has to be self- concerned . And it is our self-determination that is necessary for a self-reliant India , mandatory. And this responsibility is not only with the tax department , it is the responsibility of every Indian , every Indian. Who are able to pay taxes , but that tax is not in the net , he Motu Ask your soul , come forward , and now 15 since August two days , try to recall those who die for freedom ; You will feel yes , I too must give something.
Here , faith , rights , obligations , while respecting this important sense , respect the platform while , new India , to prove the determination of independent India. Once again very much present and future honest taxpayers in the country greet , congratulate and this initiative has been very big decision. The amount of congratulations to the officials of Income Tax is also less. Every taxpayer should also congratulate the income tax authorities because in a way they have bonded themselves. To their own power , They have cut their rights. Who would not be proud if the officials of Income Tax Department come forward in this way. Every countryman should be proud. And in the past, perhaps due to tax, for some time, those people would not have liked to go on the path of giving tax. Now the way has been made , it has become an attractive way to go towards giving tax. And so let us , take advantage of this mechanism for the creation of grand India traveling even further to join the system. I once again thank you very much , I wish you many best wishes. I also thank Nirmala ji and her entire team for leading a number of positive decisions that have a long-lasting impact for the bright future of the country. I once again congratulate everyone , thank you all !!
Thanks a lot.
VRRK / KP / NS
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