MANU/PIBU/0137/2016
Department/Board : Press Information Bureau
Date : 02.02.2016
Government sets-up Tax Policy Research Unit and Tax Policy Council to bring consistency, multidisciplinary inputs, and coherence in Tax Policy
The Tax Administration Reform Commission (TARC) have in their First Report, identified handling of tax policy and related legislation as one of the areas which needs structural modifications. Observing that currently, this is handled in the two Boards i.e. CBDT and CBEC, independently in the Tax Research Unit (TRU) and Tax Policy and Legislation (TPL) wings, the proposals of the Boards reach the Finance Minister in separate channels. To bring consistency, multidisciplinary inputs, and coherence in policy making, TARC has recommended that a Tax Council supported by a common Tax Policy and Analysis (TPA) unit should be established to cater to needs of both direct and indirect taxes. Comprising tax administrators, economists, and other specialists such as statisticians, tax law experts, operation research specialists and social researchers should be set-up for both the Boards.
Considering the above, the Government has created a Tax Policy Research Unit (TPRU) and Tax Policy Council.
Details are given below.
TAX POLICY RESEARCH UNIT (TPRU)
The Tax Policy Research Unit (TPRU) will be a multi disciplinary body with the following objectives:-
(i) Carry-out studies on various topics of fiscal and tax policies referred to it by CBDT and CBEC and will provide independent analysis on such topics;
(ii) Will also prepare and disseminate policy papers and background papers on various tax policy issues;
(iii) Will assist Tax Policy Council chaired by FM in taking appropriate tax policy decisions; and
(iv) Liaise with State Commercial Tax Departments.
For this purpose the TPRU may also interact with various research institutions, wherever necessary. The TPRU will prepare for every tax proposal an analysis covering the following three points:-