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Tamil Nadu
By Our Special Correspondent
Pointing out that the collections in the recently-concluded financial year were Rs. 1,300 crores more than the previous year, the Minister for Commercial Taxes, S. M. Velusamy, today told the Assembly, amid thumping of desks by the ruling party, that they exceeded the Rs. 10,000-crore mark "for the first time in the history of Tamil Nadu". Mr. Velusamy said the Revenue Recovery Act would be amended to empower government departments to purchase property brought up for sale at public auctions when there was no bid. This would facilitate better collection of sales tax arrears.
A Bill, to give effect to the reduction in the security deposit payable by cable TV operators to local bodies, would be introduced in the current session. The deposit had been reduced from Rs. 10,000 to 5,000 in municipal corporations and municipalities, and Rs. 2,500 in village and town panchayats. The transit pass system would be introduced for white kerosene, Indian-made Foreign Liquor and foreign liquor to curb tax evasion and illegal transportation. At present, the system was applicable to various goods including vegetable oil, pulses and grams. Besides, transit passes would be issued at ports for notified and important bulk goods.
Curbing tax evasion
To receive information about tax evasion, an interactive voice recording system would be introduced under the direct control of the Commissioner of Commercial Taxes. The identity of the callers would be kept confidential, the Minister said. A cash award scheme would be instituted for officials of the enforcement and other wings of the department for their work in detection of tax evasion and revenue collection.
Charges against DMK
As part of his reply to the debate on the demands for the Commercial Taxes department, Mr. Velusamy faulted the previous DMK regime, particularly the former Chief Minister, M. Karunanidhi, who held the portfolio, for having facilitated "tax evasion and loss to the exchequer" by various actions including dismantling of 17 checkposts, and tax concessions to some companies engaged in production of edible oils and cement.
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