IRD’s internal crisis slows tax collection
View(s):Tax collection by the Inland Revenue Department (IRD) has slowed down due to the lethargy of tax collection officials as a result of administrative issues and politicisation of the department, employees alleged. Changes in the higher administration structure including the appointment of an Acting Commissioner General in an ad hoc manner keeping the top post vacant have brought the country’s tax collection authority to an unproductive situation.
The Treasury has blamed the department hierarchy and top officials for the failure to meet the revenue target as there has been a Rs. 75 billion shortfall in revenue up-to-date, leaving the Government’s development goals in disarray.
According to the revised revenue estimates for 2014, tax revenue is Rs. 1168 billion while the estimate for 2015 is Rs. 1361 billion, a senior official said.
The collection process should be carried out without considering political affiliation and the IRD has fulfilled this task irrespective of political differences treating everyone alike, several employees said adding that this situation has now been changed.
All decision making and administrative functions relating to tax collection and relevant matters are under the control of the Commissioner General who should command respect of other employees.
The change in the practice of appointing the most senior official as the Commissioner General has frustrated employees, they added.