The Hindu Business Line : Kerala aims at Rs 11,000-cr tax mop-up

Kochi May 15 The Kerala Government is targeting tax collection of Rs 11,000 crore in the current financial year, a 51 per cent increase over the tax of Rs 8,600 crore collected in 2006-07.

Of the targeted amount, about 65 per cent is expected to be collected from Ernakulam district alone, the State Finance Minister, Dr Thomas Issac, said at a press meet here on Tuesday. "If this buoyancy in tax collection can be sustained, the State can be out of the woods by 2010," the Minister said.

Steps to curb evasion

The State Government, he said, was also planning to set up a permanent mechanism at check posts, ports and railway stations to curb tax evasion. He pointed out that large-scale evasion through railways, of late, had come to the government's notice and the Government had already made stringent measures at check posts, ports and railway stations to ensure that there was no evasion.

The increase in railway parcel movement is helping tax evaders to transport goods through railways. Many parcel agencies are also helping them to move cargo by rail. Given the situation, he said the parcel agency offices have been directed to provide information to the Government as to whom the goods have been brought for.

Cargo inspection

Likewise, there are also instances of tax evasion through coastal shipping where goods such as granite, tiles and marbles are transported by ships from Mumbai and Gujarat through Kochi Port. However, the Port Trust authorities had extended all help to the Sales Tax officials to inspect these cargoes, he added.

Moreover, weigh bridges in all check posts would be constructed and a check post plaza would be set up at Palakaad-Walayar check post.

According to the Minister, tax evasion by some gold jewellers have also come to the notice of the Government and it has been decided to have permanent bill checkers at jewellers who evade tax. This year, the bill checking of gold ornaments sold will be made stringent and fine will be levied on those refuse to give bills to customers.

The introduction of compounding tax for jewellers has also started yielding results and the Government has collected Rs 100 crore from them last year, he added.