FM at the LTU - Toilet is the best place to judge the quality of the building
Finance Minister Chidambaram has formally declared the LTU in Bangalore functional. Obviously Chief Commissioner KS Nair had done a good job and the FM was happy. The FM wants to come back to the LTU incognito and inspect the toilets for he believes that Toilet is the best place to judge the quality of the building. The FM had a Member in the CBEC who retired recently, who as a Commissioner used to start his day by inspecting all the toilets in the office. He believed that if officers maintained punctuality and kept their toilets clean, everything else would be in order. The FM gave an inspiring speech at the LTU, extracts from which are reproduced below.
++ Contrary to popular perception, we are not a highly taxed country.
++There are countries which have much higher level of taxation yet there is a higher degree of compliance.
++ The tax collector thinks that every assessee, every taxpayer out do, out smart him and to evade taxes.
++ The tax payer thinks that every tax collector is a Shylock and a Shark out to draw the last drop of blood from his body.
++ This is obviously a very outdated, primitive, dysfunctional model of Tax Administration
++ We generally believe that truck drivers have a greater risk to accidents than a taxi driver, and a taxi driver has a greater risk to accidents than a passenger car driver and passenger car driver has a greater risk to accidents than owner drivers.
++ I do not wish to get into any controversy, but some women think that men are poor drivers and men think that women are poor drivers. The point is there is a risk assessment.
++ Likewise, research reveals that there is a risk assessment among Taxpayers.
++ I have often asked some of my friends what is the point in buying jewellery if you can’t wear it. If you can’t wear jewellery, and go to a party, for the fear of an Income Tax officer will find out how much you are wearing and the Income tax applicable is paid or not
++ Every time you sit on a barber’s chair, you don’t look at the mirror to see whether the barber is cutting your ear or nose or cutting your hair. Trust your lock of hair to your barber. But from time to time you might want to look up the mirror to see if he is cutting it properly. Point is, trust your client but verify.
++ This client is not mere taxpayer. He is creating wealth, he is producing goods, he is producing services, he is employing thousands of people, he is helping the economy grow.
++ Yes he may make mistakes, So what? Who does not make mistakes? Which Tax Officer has never made a mistake in life? He will make mistakes, so what? If you find the mistake, correct him, but treat him with courtesy and respect.
++ A place for people to come and wait, who can have coffee, tea, drinking water, proper toilets.
++ No one is going to be allowed here who cannot wear simple, neat, proper clothes or simple clean footwear.
++ This must become an example of a Government office, which does not exist.
++ The whole public perception of a Government office must change. People must walk in here and say, is this a Government Office? That is the kind of office you must create.
++ In this country appeals take much longer than the initial assessment. And I can’t understand that at all. So appeals must be completed within time.
++ We will create offices of this quality and this kind and handpick the officers who can manage these LTUs.
++ Now some people may think that these LTUs are going to cost a lot of money. Completely wrong!
++ The cost of tax collection in India is the lowest in the world. It is 0.67%. This year it is expected to come down to 0.64%.
++ It is part of your responsibility, not only to retain your 31 clients, but also to attract more clients.
++ How does an advertising agency work? You retain your clients, but try to attract more clients. In an advertising agency, there is a rival advertising agency, which can take away your client. Here there is no rival LTU.
++ Why should anyone fear an Income Tax Officer, why should anyone fear a Central Excise officer?
++ If you pay taxes, you can walk with your head held high.
++ We have more information than you think we have. It is our limitation of mining that information which is standing in the way of reaching you.
++ I intend to come back here in a year to see how well this building is maintained, how many people are working here, how well the toilets are maintained.
++ In fact Toilet is the best place to judge the quality of the building.
Click here to see the full text of the FM’s speech.