Finance ministry made a statement that the government is not noticing any proposal towards the merger of the Central Board of Direct Taxes (CBDT) and the Central Board of Indirect Taxes (CBIC) as recommended by the Tax Administration Reform Commission headed by Parthasarathi Shome.

Reacting to a media report which suggested that a merger of policy-making bodies of direct and indirect taxes CBDT and CBIC is on cards, the ministry in a statement said, “The government has no proposal to merge the two Boards created under the Central Boards of Revenue Act, 1963.”

TARC had made 385 recommendations out of which 291 recommendations are relating to CBDT and 253 to CBIC.

The Tax Administration Reforms Commission (TARC) was constituted with a view to review the application of tax Policies and Laws in the context of global best practices and recommend measures for reforms required in Tax Administration to enhance its effectiveness and efficiency.

“As a part of an assurance made by the government in Parliament in response to a Parliament question, the government has also placed this fact in 2018 before the Committee on Government Assurances. The action is taken report on the recommendations of the TARC is placed even on the website of the Department of Revenue, which clearly shows that this recommendation was not accepted,” the ministry added.