The Hindu Business Line : 17 pc growth in Karnataka commercial tax collection

Of the total tax collection of Rs 1,167 crore in the first month of the current fiscal, Rs 612 crore is from VAT. The State collected Rs 515 crore in the corresponding period last fiscal.

Mangalore , May 29

Karnataka has registered 17 per cent growth in the collection of commercial tax in the first month of the current fiscal as against the corresponding period previous year, said Mr P. Ravi Kumar, Commissioner of Commercial Taxes, Karnataka.

Addressing the members of the Kanara Chamber of Commerce and Industry (KCCI) here on Monday, Mr Ravi Kumar said that the State faced a shortfall of Rs 1,300 crore in the collection of VAT (value-added tax) in the last fiscal. There is some encouraging trend in the collection of VAT during the current fiscal.

Of the total tax collection of Rs 1,167 crore in the first month of the current fiscal, Rs 612 crore is from VAT. The State collected Rs 515 crore in the corresponding period in the previous fiscal. He said efforts are on to simplify VAT further.

`C' FORMS IN DEMAT

He informed the meeting that the Commissioners of Commercial Tax, who met recently, had decided to eliminate the physical `C' forms to help the trade. "We have proposed to remove physical `C' forms, and planned to introduce `C' forms in dematerialised format," he said.

Asked about the likely introduction of the service, he said software for this purpose is getting ready. He hoped that this would be introduced soon.

ASSURANCE ON CST

To a request of the KCCI to bring the Central Sales Tax (CST) to zero, he said CST would be reduced in phases. Stating that revenue in CST is high, he said, "We can't lose that at a stretch." The Empowered Committee, which met on May 25, has decided to bring it to 3 per cent by September and to 2 per cent by April 2007.

ENTRY TAX

On special entry tax, Mr Ravi Kumar said it was the demand of the trade bodies to introduce that tax. Terming it as a countervailing duty, he said it did not affect the traders.

The Karnataka Medical Education Minister, Dr V.S. Acharya, said on the occasion that tax system would be further streamlined in two years.

Mr A. Srinivasa Rao, KCCI President, presided over the function.