CBDT offers unconventional incentives to drive tax collections

The Central Board of Direct Taxes in an ingenious (and desperate) gambit to increase tax collections and secure government finances burdened by a bloated subsidy bill has offered tax officials a good appraisal and a posting of their choice to boot, on higher tax collections.
 
The CBDT's move to take recourse practices associated with the private sector tactics sits well with the government's stepped up efforts to collect as much tax as possible in the 52 days before the fiscal year draws to a close.

Facing the brunt of a slowing economy, direct tax collections were up only 9 per cent between April and January, as against the 19 per cent targeted for the whole fiscal. CBDT has so far collected 3,60,000 crore in direct taxes, which is woefully short than the government's original full-year projection of Rs5,33,000 crore.

"Among the parameters of performance in your work area, achievement of revenue collection target will obviously be given the highest weightage while writing your annual performance appraisal," CBDT chairman Laxman Das said in a communication to field formations. "(It) will also be a major factor while considering placements during annual general transfers in 2012."

Das, who took over this month, has asked his deputies in the field to furnish the latest data of revenue collection in their respective regions by 15 February.

"I trust that each of you understands that achieving the budget target is non-negotiable," Das said. "I have taken over as chairman at a time when revenue collections seem to be far away from the budget target with less than two months at hand. Our task as revenue administrators becomes that much more challenging."

Terming the set revenue target of Rs5,32,000 crore as "non-negotiable", CBDT chairman Laxman Das, in a communication to top Income Tax officials in the country, has asked them to rise to the "challenge" of filling the deficit.