Tax collection to register 15 per cent growth: Isaac

Finance minister T.M. Thomas Isaac inaugurating the review meeting ofcommercial taxes of Kottayam, Idukki districts at collectorateconference hall Kottayam on Thursday.  

Recessionary trends in the economy has impacted the tax collection in the State which showed an increase of only 10 per cent in the first half year period of the current financial year, against more than 20 per cent during the same period the previous year, Finance Minister T.M. Thomas Isaac has said.

Speaking to media persons after a review of commercial taxes in Kottayam and Idukky districts here on Thursday, Dr. Isaac said he was expecting a spurt in tax collection during the remaining period of the financial year as the economy has already shown signs of recovery. “We are expecting a 15 per cent increase in tax collection by the end of the current financial year,” he said.

According to him, the fall was not unexpected and the State hopes to have an increased tax collection during the coming financial year. The impact of intense tax collection efforts together with modernisation programmes including e-filing and e-payment facilities for the traders, would reflect in the coming year, he said.

The date base collected through the e-filing and e-payment schemes would provide the authorities with an effective mechanism for scientific scrutiny, he added.

He said the government has taken a serious note of the smuggling of cardamom from Idukki. It has been found that the real incentive for the smuggling operations was not the 2 per cent CST which the smugglers save on the produce, but the commission they received if they brought the cardamom in ‘black’ to the traders in Tamil Nadu, who would save on their income tax. As such, the strategy would have to be chalked out in consultation with the Income Tax department, he said.

Referring to the lack of space felt at the Kumily checkpost he said the government was thinking of approaching the Tamil Nadu government seeking space in the neighbouring State for setting up a checkpost.

Earlier, the review of tax collection showed that Kottayam and Idukki districts registered a growth rate more than the State average, with Idukki registering an increase of 18 per cent and Kottayam, 17 per cent. However certain sectors like hospitality industry, computer sales and sheet rubber sector registered a fall. With the revival in the economy, tax collection from these sectors is expected to reflect in the coming months.

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Printable version | Jun 20, 2021 12:52:39 PM |

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