PM Modi set to unveil scheme to reward honest taxpayers

NEW DELHI: Prime Minister Narendra Modi is set to unveil the much-awaited scheme to reward honest taxpayers on Thursday.
While the government has for long talked about various plans — ranging from cashback or rewards under GST for those using digital modes of payment to make purchases — it has so far failed to implement them. In fact, several other steps were contemplated on the GST side, but none have seen the light of the day so far.
Similarly, there have been recommendations from the Central Board of Direct Taxes to recognise taxpayers at district and state level, besides helping them access government services quickly. Again, the revenue department has failed to implement them for months. There have also been suggestions to offer additional benefits for those who pay their taxes honestly. But the government is unwilling to move in that direction, fearing that it will result in foregoing revenue or incurring expenditure.

In the Budget, finance minister Nirmala Sitharaman had announced a Taxpayers’ Charter, which is among the set of measures that Modi is expected to announce on Thursday, when he launches the platform to honour honest taxpayers and usher in greater transparency.
Officials said some effort is being made to stipulate timelines, so that taxpayers are not made to run to officers, seeking something that rightfully belongs to them.
Over the last few weeks, CBDT has been publicising the faceless tax assessment scheme — where the identity of the assessees and the tax officers are not known — that was launched last year. Modi is expected to take the process forward after himself looking at presentations made by CBDT over the last few weeks.
In his speeches too, the PM has spoken about the need to recognise honest taxpayers at a time when the government is battling an acute resource crunch. Modi has several ideas on toning up the direct tax regime and had himself advocated rewriting the law and steps to ensure that more effort is made to expand the tax base, which is largely confined to the salaried and transactions where tax is deducted or collected at source. In fact, he had flagged the issue at a meeting with tax officers a few years ago.