Inventive babus: VAT an idea to boost revenue

Inventive babus: VAT  an idea to boost revenue
Published on: 

In an experiment of sorts, the Arvind Kejriwal Government will appoint officers to top posts of two revenue generating departments — VAT and Excise — based on their innovative ideas and skills to generate and collect more revenue to the State exchequer. The AAP Government has asked eligible officers to apply for the top posts of VAT and Excise Departments. This is the first time that Government has issued circular inviting applications from IAS/DANICS officials to come up with a blueprint to generate more revenue.

The Arvind Kejriwal Government’s move may win a few accolades for this unprecedented move but in reality it seems to be another publicity-seeking exercise indicating hollowness on the part of the Government, said political analysts. According to past practices, neither the State Governments (including Delhi) nor Central Government has adhered to this kind of practice.

Traditionally, the VAT Commissioner post has been held by a senior IAS officer while the post of Excise Commissioner has gone to an IAS officer either promoted from DANICS or IAS with seven to eight years in service. Both the posts are considered very prestigious as they are the main revenue providers to the Delhi Government.   According to the circular, only IAS and DANICS officers posted in Delhi Government would be eligible for the post.

Officials, who are interested, will have to give a detailed blueprint in a sealed cover to Principal Secretary (Services) by May 17.  A committee headed by Chief Minister will take a final decision. The Chief Minister himself will conduct interview of the selected candidates.Top sources told The Pioneer that there would be hardly 60 to 70 officials (both IAS and DANICS) who would be eligible for the post. “The State Government can easily do the profiling and draw up a shortlist rather than issue circular inviting applications from bureaucrats,” said a senior official on condition of anonymity. 

According to the circular, the blueprint should contain the quarterly milestones of revenue collection from VAT and Excise; suggestions on policy changes, traders’ partnership in governance, change in work culture and work practices, widening of tax base and plugging tax evasion and expectations from the government in terms of resources and powers.

“For VAT Commissioner, IAS officers who are posted in Delhi Government and are in the pay band 4 with grade pay of Rs 10,000 and also those in HAG would be eligible for the post. For Excise Commissioner, both IAS and DANICS may apply who are in the grade pay of Rs 8,700 and above till supper-time scale,” it said.

“The Government is also looking for those officers who can create an appropriate business environment for effective and voluntary tax compliance and plugging tax evasion through ingenious measures. The selected officers should be assured of stability of tenure if his/her performance is assessed to be outstanding in terms of management of the department and also in terms of meeting the quarter/annual targets. Besides, the officer should also be rewarded with attractive performance incentives, details of which should be informed very shortly,” the circular said.

Both VAT and Excise Departments have failed to meet their target in the budget estimate and there was a shortfall of revenue to the tune of Rs 4,000 crore in the last fiscal year. It is noted that Kejriwal had asked HODs to think out-of-the box to achieve targets. The Government is projecting the move as a bid to encourage healthy competition among bureaucrats. “We have seen what happens in transfers and postings. Recommendations come (to be in any department). This time we have decided that for some of the head of the departments, there should be a new experiment,” Kejriwal had said.

Daily Pioneer
dailypioneer.com