International Finance Corporation (IFC), a member of the World Bank Group, in a report released on Tuesday said the implementation of its key recommendations in the past four years has led to an improvement in administration of commercial taxes and the investment climate in the state.

Releasing the report prepared by Indian Market Research Bureau (IMRB) in association with the IFC, Rajul Awasthi, a senior tax specialist with the IFC, said majority of the businesses now feel that tax compliance is easier and it is better to pay rather than avoid tax besides most of the businesses no longer fear scrutiny if they pay more taxes.

Awasthi said this has been possible following the implementation of key recommendations made by the IFC in 2009 to introduce easier, better and less cumbersome tax administration in the state.

While making a presentation of its key recommendations during the discussion on “Reforms in Bihar Commercial Taxes” organised by the IFC, Gajendra Maheshwari, chartered accountant and lawyer with the IFC, said it made six broad recommendations that included simplification of tax administration process, e-governance regime for medium/large tax payers, simplified regime for small traders, e-facilitation centres, tax appellate reforms, tax payers’ education and communication.

Awasthi said implementation of key recommendations not only widened the tax base but also helped the department in achieving cent per cent tax collection through e-payment.