CBEC’s Q1 collections upbeat
CBEC is smiling all the way from the bank. The collections in the first quarter have enough reasons to make the dour babus smile. Customs collections have gone up by 34% compared to the same period in the previous year, while Central Excise collections are up by 8%. There is a huge 58% increase in Service Tax. Customs and Central Excise revenue in the first quarter amounted to Rs. 43200 Crores. This good performance leads to certain vital conclusions.
The Facts:
1. During this period, there was a lull in leadership – Board was in the process of change in leadership.
2. There was a justified rest by officers after hectic, pathetic, and often illegal reaching of revenue targets in March.
3. There were no revenue meetings, no strategy sessions, no weekly monitoring, and no daily reporting of revenue performance.
4. There was absolutely no coaxing requesting or threatening the assessees to pay up.
5. Most of the officers from Chief Commissioners to Sepoys were busy in transfers, trying for a better post, trying to retain a post, trying to stall somebody’s posting. And after the transfer orders were issued, trying for change, going to courts etc.
6. It is seen that during the transfer season, work comes to a grinding halt in most of the offices, as they are always busy over the phones trying to know the latest on the transfer news. We in TIOL get hundreds of calls from frantic officers wanting to know the latest position, even as we assure them that we would carry the news the moment we get it.
7. There was absolutely no activity on the Revenue Drive front.
The Result
Substantial Increase in Revenue
The Conclusion
Revenue comes not because of the officers, but often, in spite of them. The Government should think of ways and means to keep the officers as away from revenue collection as possible. This can be achieved by frequent transfer orders – transfers need not be actually affected; you can call for representations every three months, issue orders in batches of ten at a time, issue instructions on how the orders are to be implemented and how the violators are going to be rewarded. Make a feeling that there is one more list being cooked. Daily reports on transfer monitoring should be sought from all offices; frequent jamboree like sports meets and cultural extravaganza should be organised. Officers, even about to retire ones, should be allowed to go on foreign pleasure trips with a few jargon like WTO, WCO thrown in. Do anything, but keep them active and away from Revenue and you will see a phenomenal rise in collections. The Government should try this experiment at least in March and see the results.