Question

Regarding two new committees set up by the Ministry of Finance – Tax Policy Council (TPC) and Tax Policy Research Unit (TPRU) which of the statement is incorrect

• A. TPC will be headed by Prime Minister
• B. TPC will look at all the research findings coming from Tax Policy Research (TPRU) Unit
• C. It will suggest broad policy measures for taxation
• D. The Council will be advisory in nature.

Answer 1

The correct option is A

TPC will be headed by Prime Minister

The Tax Policy Council will look at all the research findings coming from Tax Policy Research (TPRU) Unit and suggest broad policy measures for taxation. The Council will be advisory in nature, which will help the Government in identifying key policy decisions for taxation. Tax Policy Council will be headed by the Union Finance Minister.

The Tax Policy Research Unit (TPRU) will be a multi disciplinary body with the following objectives:-

(i) Carry-out studies on various topics of fiscal and tax policies referred to it by CBDT and CBEC and will provide independent analysis on such topics;

(ii) Will also prepare and disseminate policy papers and background papers on various tax policy issues;

(iii) Will assist Tax Policy Council chaired by FM in taking appropriate tax policy decisions; and

(iv) Liaise with State Commercial Tax Departments