The standing committee of the Assembly on Revenue-related affairs has recommended that the Government reconsider the tax exemptions given to Sunrisers Team of the Indian Premier League (IPL) T-20 cricket matches.
The committee, which discussed the revenues accrued to the ex-chequer through entertainment tax, felt that the concession to the IPL team was not proper as the matches in the State Capital were being held on ``highly commercial lines’’. The Government should reconsider the issue as it was depriving huge amount of revenues to the local bodies.
The Committee, in its report, said the Commercial Taxes department could not achieve the targets set for collection of entertainment tax since last three years. On questioning the officials, it was observed that the rightful share of the tax was not being paid to local bodies though it was mandatory under the statute.
Headed by G. Venkata Seshu, the committee expressed serious concern at the ``casual attitude’’ of the officials concerned in giving local bodies their share in entertainment tax collection that was mainly aimed at augmenting their revenues. The panel had, accordingly, asked the Government to ensure payment of their share of entertainment tax to local bodies on a quarterly basis, besides clearing arrears of previous years if any.
The panel wanted the Government to take up with the Central Government the issue of levying more profession tax on individuals with higher earnings as it would augment and strengthen the revenues of local bodies to a considerable extent. The present ceiling of Rs. 2,500 a year on all professionals alike was not justifiable as those engaged in Information Technology sector, Chartered Accountants and others were drawing higher earnings.
