The Hindu Business Line : More checkposts to curb inter-State spices smuggling

THE State Government will set up checkposts on by-routes at the borders with Karnataka and Tamil Nadu so as to arrest the rampant smuggling and evasion of sales tax of pepper and other commodities out of the State.

The Commissioner of Commercial Taxes, Kerala, Mr V. Somasundaran, told Business Line that reports of large-scale smuggling and detention of smuggled goods along with a vehicle by the Karnataka police at their Kutta checkpost on the border Wayanad border, was being investigated.

There are only four or five checkposts on the main routes at the State's border with Karnataka in the Wayanad district. The tax evaders carry rubber, spices and other agri-products through the by-routes in this district and Kasargode where there are no checkposts.

Mr Somasundaran said that new posts have been set up on the by-routes to arrest the smuggling and more mobile squads have been pressed into service in these areas.

He said the Government had constituted a committee to study the functioning of check posts in the State and give its recommendations for revamping them. The report is expected anytime now, he added.

Meanwhile, market observers said that rampant smuggling of pepper in order to evade tax must have deprived the State of an estimated Rs 11 crore of sales tax revenue.

Almost 70 per cent of the pepper produced in the State's Idukki and Wayanad districts is smuggled out to evade the taxes levied by the State , they told Business Line.

An estimated 35,000 tonnes of pepper were being smuggled out via Mananthavady to Karnataka and Bodimedu, Ramalkalmedu and Cumbummedu to Tamil Nadu, they claimed.

One of them pointed out "trading in tax is going on now". At the rate of Rs 5 per kg transporters would carry pepper from Kerala and Karnataka to any destination in India without any documents, they alleged. As a result, they earn good margins.

Conditions set by the Government that the buyers and sellers should be registered and complete C and F forms, have led to this increased illegal trading, the sources pointed out.

According to reports, pepper is being smuggled out of Kerala's spices growing districts daily. Recently, a vehicle carrying tonnes of pepper was detained by the Karnataka police at the Kutta station in Karnataka on its border with Kerala. Such smuggling also takes place from Kasargode and Idukki districts by road and rail, they said.

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