A recent parliamentary panel report has raised serious concerns over the staffing shortages in two major tax bodies, the Central Board of Direct Taxes (CBDT) and the Central Board of Indirect Taxes and Customs (CBIC). The Standing Committee on Finance highlighted that nearly one-third of the sanctioned posts in these agencies remain vacant, exacerbating the growing problem of tax arrears.
The report, tabled in Parliament on Friday, revealed that 36 percent of the posts in CBDT and 38 percent of the posts in CBIC are unfilled. Specifically, the CBDT has a sanctioned strength of over 78,000 officers, but only 50,000 are currently in position as of September 1, 2024, while the CBIC has a sanctioned strength of over 84,000, with only 52,000 officers working.
This staffing crisis is contributing significantly to the accumulation of tax arrears. According to the report, the total arrears in CBDT surged from over ₹10 lakh crore in 2019-20 to over ₹42 lakh crore by October 7, 2024, while CBIC saw its arrears grow from ₹3.02 lakh crore in 2021-22 to over ₹4.26 lakh crore in 2023-24.
The report further notes that nearly 85 percent of indirect tax arrears and 65 percent of direct tax arrears are now classified as difficult to collect, a troubling statistic that highlights the deepening fiscal challenges.
These vacancies, coupled with the rising tax arrears, are significant given India’s sliding GDP, which adds to the urgency of addressing this issue. The committee’s findings stress the need for immediate action to fill the vacant positions and strengthen the operational efficiency of both tax bodies to curb the growing backlog and support economic recovery.