The Commercial Taxes Department has been given a target of Rs.26,851 crore towards revenue collection for the current year, Commercial Taxes Minister S.N.M. Ubayadullah told the Assembly on Monday.
Giving the collection figures of the previous years, Mr. Ubayadullah said it was about Rs.24,819 crore in 2009-2010; Rs.22,570 crore in 2008-2009; Rs.19,952 crore in 2007-2008; Rs.19,217 crore in 2006-2007 and Rs.16,615 crore in 2005-2006.
Replying to a debate on the demands for grants to his department, he said that a sum of Rs.1,200 crore was being collected monthly online through State Bank of India (SBI).
The government was holding discussion with other banks to broaden the facility.
Of the previous year's collection (barring entertainment, betting and luxury taxes), Rs.14,521 crore came from 100 companies in Chennai. This accounted for 76 per cent of the total revenue from divisions in Chennai and 60 per cent of the State's revenue through taxes.
To improve the services for large tax payers, a fully-modernised office, headed by a Joint Commissioner with four Deputy Commissioners, would be established.
One more division
Of the total income through commercial taxes, about 80 per cent came from Chennai, Kancheepuram and Tiruvallur districts.
Now, there were four Chennai divisions collecting revenue from the districts. To improve the collection, one more division — Chennai (West) — would be created.
Mission Mode Project
Under the Mission Mode Project, the Commercial Taxes Department had been chosen. In the first phase, the Union government had sanctioned Rs.47.89 crore, of which the Central share was Rs.32.53 crore and the State government's share Rs.15.36 crore. For 2009-2010, the Centre released Rs.12.35 crore to the State.
The project was aimed at creating information technology infrastructure to ensure uniformity and standards in commercial tax administration.
The Minister announced that a Bill would be shortly introduced to provide one-time settlement for expediting the collection of tax arrears.