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Integrity Scorecard

2007 Assessment

India: Integrity Indicators Scorecard

India: Integrity Scorecard Report > Sub-Category: Taxes and Customs
Indicators		Score
58	In law, is there a national tax collection agency?	100
59	Is the tax collection agency effective?	100
60	In practice, are tax laws enforced uniformly and without discrimination?	75
61	In law, is there a national customs and excise agency?	100
62	Is the customs and excise agency effective?	100
63	In practice, are customs and excise laws enforced uniformly and without discrimination?	75

Indicator and sub-Indicator Details

In law, is there a national tax collection agency?

58: In law, is there a national tax collection agency?

Score:

YES

Comments: The are different agencies within the Department of Revenue linked to revenue collection. The main agencies are the Central Board of Excise and Customs (CBEC) and the Central Board of Income Tax.

References: www.finmin.nic.in/

Is the tax collection agency effective?

59a: In practice, the tax collection agency has a professional, full-time staff.

Score:

100

Comments: Yes, they have a full-time, professional staff.

References: [ LINK ]

59b: In practice, the tax agency receives regular funding.

Score:

100

Comments: It is laid out in the budget of the Finance Ministry.

References: www.finmin.nic.in/

In practice, are tax laws enforced uniformly and without discrimination?

60: In practice, are tax laws enforced uniformly and without discrimination?

Score:

100

Comments: There have been several cases of discrimination caused by favoritism, nepotism, political pressures and subjective interpretation of the law, which have been reported in the media and audit reports. The government maintains that given the manner in which the Appelate Tribunals are created there is no room for nepotism, corruption and favoritism.

References: www.tribuneindia.com/2001/20010404/main3.htm;

itat.nic.in/Accolades.htm; parliamentofindia.nic.in/lsdeb/ls12/ses1/3026039801.htm

Peer Review Comments: Indian tax laws are highly discriminatory. Broadly, the political class, legal class, film stars, those in the medical profession and the so-called "spiritual leaders" evade taxes as they enjoy a lot of freedom and are close to the power centers.

In law, is there a national customs and excise agency?

61: In law, is there a national customs and excise agency?

Score:

YES

Comments: Central Board of Excise and Customs (CBEC) is a part of the Department of Revenue under the Ministry of Finance. It deals with the tasks of formulation of policy concerning levy and collection of Customs and Central Excise duties, prevention of smuggling and administration of matters relating to Customs, Central Excise and Narcotics to the extent under CBEC's purview. The board is the administrative authority for its subordinate organizations, including Custom Houses, Central Excise Commissionerates and the Central Revenues Control Laboratory.

References: www.finmin.nic.in/the_ministry/dept_revenue/cbec/index.html

Is the customs and excise agency effective?

62a: In practice, the customs and excise agency has a professional, full-time staff.

Score:

100

Comments: They have a full-time, professional staff drawn from the Indian Revenue Service.

References: www.finmin.nic.in/the_ministry/dept_revenue/cbec/index.html

62b: In practice, the customs and excise agency receives regular funding.

Score:

100

Comments: It is included as part of the budgetary provisions for the Ministrry of Finance.

References: www.finmin.nic.in/the_ministry/dept_revenue/cbec/index.html

In practice, are customs and excise laws enforced uniformly and without discrimination?

63: In practice, are customs and excise laws enforced uniformly and without discrimination?

Score:

100

Comments: There have been some reports of favoritism, misapplication of law and procedures, nepotism and corruption with regard to the collection of customs and excise revenues involving large businesses, which have been reported both in the media and by the audit department.

References: www.finmin.nic.in/the_ministry/dept_revenue/cbec/index.html;

www.irb-cisr.gc.ca/en/research/publications/index_e.htm?cid=0&docid=292 -;

www.indianexpress.com/res/web/pIe/ie/daily/19990702/ige02045.html; www.tribuneindia.com/2005/20051001/main1.htm -