Taxing demands

Unrealistic revenue targets will affect business environment

A recently reported directive by the Central Board of Direct Taxes to senior tax officials to focus on recovering 40 per cent of arrears in direct taxes in the last three months of the current fiscal year (January-March) is ill-advised, both in practical terms and in its psychological impact on business sentiment. The directive, issued after a meeting on December 21, aims to recover about Rs 7.7 trillion out of total arrears of Rs 19.35 trillion in the last quarter of the fiscal year. In addition, targets have been set jurisdiction-wise. Mumbai and Delhi, for instance, at Rs 2.3 trillion