Demanding reorganisation of the Commercial Taxes Department, the Telangana Commercial Taxes Gazetted Officers Association (TGTOA) sought creation of new divisions and circle offices in the interest of State revenue and administrative convenience.

In a statement issued here, TGTOA president T. Venkateshwarlu said the department yielding highest revenue to the State exchequer was in need of reorganisation and restructuring to cope with the ensuing GST regime and ever-increasing tax base. The Association suggested creation of new commercial taxes division and circle offices in Medak, Khammam and Mahabubnagar districts for effective functioning and raising the tax revenue, administrative feasibility and convenience of dealers.

At present, the entire tax and service administration was being monitored from the neighbouring districts of Nizamabad, Warangal and Nalgonda districts.

“A high-level official committee also urged the need for reorganisation of the department,” Mr. Venkateshwarlu said. New divisions in the districts would increase the revenue potential as more number of dealers could be brought under the tax net, he observed.

The Ministers were approached on the issue and all of them, including the Deputy Chief Minister, had promised support on the matter. Mr. Venkateshwarlu said apprehensions from certain official quarters about the cost-effectiveness was unfounded and not based on facts at the ground-level. He said the department was predominantly one devoted to revenue collection, with tax enforcement such as audit, vehicular check and arrear collection wings being the lifeline. “Every area where business potential exists has to be watched and vigil maintained to tap maximum revenue,” he said.

Citing an example, Mr. Venkateshwarlu said that a dealer in Kodad area to be audited by the tax officer in Gadwal, has to travel more than 250 kms. Creation of new divisions/circles does not increase the cost of tax collection, but would benefit the State’s revenues, he added.