The government has set up two new committees -- Tax Policy Research Unit and Tax Policy Council in order to bring coherence and streamline the direct and indirect tax policy and administration.

“To bring consistency, multidisciplinary inputs, and coherence in policy making, the Tax Administration Reform Commission has recommended that a Tax Council supported by a common Tax Policy and Analysis (TPA) unit should be established to cater to needs of both direct and indirect taxes,” said the Finance Ministry on Tuesday.

Led by the Finance Minister, the Tax Policy Council would suggest broad policy measures for taxation based on inputs from the Tax Policy Research Unit (TPRU).

“The Council will be advisory in nature, which will help the Government in identifying key policy decisions for taxation,” said the Ministry, adding that it will have nine more members.

These would include Ministers of State for Finance and Commerce and Industry, Deputy Chairman, NITI Aayog, Chief Economic Adviser, Finance Secretary as well as Secretaries to the Departments of Revenue, Economic Affairs, Commerce and Industrial Policy and Promotion.

The Chairpersons of the Central Board of Direct Taxes and the Central Board of Excise and Customs will be special invitees.

Meanwhile, the TPRU will be a multi-disciplinary body to examine and analyse any fiscal or tax policy referred by the CBDT and CBEC and also prepare and disseminate policy papers and background papers on various taxation issues.

“It will assist Tax Policy Council in policy decisions and also liaise with State commercial tax departments,” said the Finance Ministry.

The TPRU will include officials from the CBDT and the CBEC as well as economists, statisticians, operational researchers and legal experts.

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