Sitharaman to Meet Officials to Overhaul Tax Administration and Improve Ease of Doing Business
Finance Minister Nirmala Sitharaman is set to hold high-stakes meetings with senior officials of the Central Board of Indirect Taxes and Customs (CBIC) and the Central Board of Direct Taxes (CBDT) next month, with a focus on streamlining tax administrations, enhancing trade facilitation, and reducing grievances.
Sitharaman will meet with principal chief commissioners at CBIC on June 20 and their counterparts at CBDT on June 23. At these meetings, she aims to review the performance of field formations handling Goods and Services Tax (GST) and customs, as well as dwell time of cargo clearance across ports and airports.
The minister is expected to lay special emphasis on timely tax refund processing, particularly in export and special economic zone or SEZ-linked categories. Any delays beyond 60 days will be scrutinized, and zones may be asked to explain the pendency and rejection trends with detailed analytics.
Sitharaman's review of automated clearances of shipments based on their low-risk profile, interdictions, and shipment examination time will also be a key focus. High pendency in Directorate General of GST Intelligence (DGGI) investigations, notably those pending over 180 days, are also likely to draw critical attention.
In the context of direct taxes, Sitharaman's interaction with CBDT principal chief commissioners will focus on improving taxpayer service delivery and litigation management. The minister aims to accelerate refunds processing, especially for exporters and special economic zone (SEZ) linked categories.
Data analysis reveals significant delays in issuing refunds due to non-processing of preliminary assessments or rectification issues arising from system-related problems. Sitharaman is also expected to explore regional best practices and push for a taxpayer-centric ecosystem that blends technology with transparency.
CBDT principal chief commissioner, Sanjay Kumar Agarwal, recently notified the agency's plan for FY26, emphasizing a trust-based approach and focusing on technology-driven support. Similarly, CBIC chairperson has communicated its strategy for people-focused tax administration starting from next fiscal year.
The Income Tax Department's latest initiative outlines its strategy to enhance taxpayer service delivery through streamlined processing of appeals and faster disposal of legacy cases. Sitharaman's meeting with the department will focus on tracking income tax returns, reviewing age-wise pendency of disputes, and pushing the boundaries of technological solutions for easier dispute resolution.
Sitharaman's review aims to evaluate both compliance and trade facilitation in line with her government's vision of fostering a business-friendly ecosystem across various taxpayer categories.