Formulate action plan to recover tax arrears, says Parliamentary panel

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A parliamentary panel has asked the government to formulate a concrete action plan to recover tax arrears that have reached Rs 11.5 trillion.


The standing committee on finance (2017-18) has said that it is "alarming" that the department of revenue seems to be caught up in the vicious cycle of tax arrears. More than Rs 11.5 trillion are outstanding in the form of tax arrears, it said, adding this is almost the size of an economy.


Considering the fact that tax arrears have been increasing year after year, the committee recommended for "devising a concrete action plan and a roadmap to clear the backlog through a time-bound fast-track mechanism". It also suggested that tribunals and courts should be regularly moved for an early and expeditious hearing of cases.

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