was specifically mandated “to review the application of tax policies and tax laws in the context
of global best practices and to recommend measures for reforms required in tax administration
to enhance its effectiveness and efficiency.” The mandate reflected a deep concern of
policymakers regarding the need for fundamental tax administration reform. Accordingly, the
TARC tasked itself to address the thus-far missing elements of best practices in tax
administration in a comprehensive manner. Such reform should aim at a vision that focuses on
taxpayers and their relationship with the tax administration. This vision has to recognize the
growing links between direct taxes and indirect taxes as occurring in most modernizing tax
administrations in cross-country experience, and show the way to building an administrative
structure that will bring accountability in the processes as well as greater outcome orientation.
This would require the structure to be overhauled for purposive delivery and be so oriented that
officers and staff are empowered while being given key performance indicators to reflect
accountability and responsibility at both the individual and organizational levels. Only such a
fundamental reform could ensure that the objective of bringing palpable benefits to taxpayers
in terms of a transparent relationship and enhanced communication, ease of compliance, and
quicker dispute resolution, is achieved
