CM wants tax collections stepped up

By Our Special Correspondent

HYDERABAD, JULY 30. The Chief Minister, Mr. N. Chandrababu Naidu, has called for a higher growth rate in commercial taxes in view of the revision in the revenue target of the Commercial Taxes department from Rs. 7,093 crores to Rs. 7,202 crores.

At a review of the first quarter performance (April to June 2000) of the department held in his chamber on Sunday, he noted that the growth rate of the tax had been 17.42 per cent. This needed to be stepped up.

Mr. Naidu reviewed the ongoing computerisation programme in the department and stressed that the information should be transmitted on a real time basis to field officers to prevent tax evasion. He instructed the officials to improve border checkposts and integrated checkposts. As in the case of the TWINS project, steps have to be initiated for integrating the services of various departments.

Out of the 3.5 lakh assesses on the rolls of the department, about 75,000 contributed 90 per cent of the revenue. He directed that the assessments of top assesses had to be integrated with the data emanating from other departments like Income Tax, Central Excise to ensure that there were no revenue leakages, according to a press release from the Chief Minister's Office (CMO).

The Chief Minister said the economic indicators and trend analysis of key indicators in the economy had to be closely studied with reference to the State's economy. Simultaneously, a district-wise information database would have to be created. Revenue potential at the district level should be arrived at with reference to which the targets and achievements must be fulfilled.

The performance of other acts administered by the Commercial Taxes Department like the AP Entertainment Tax Act, AP Professional Tax Act, Luxury Tax Act and AP Rural Development Cess had been reviewed.

The impact of the floor rates was analysed vis-a-vis their impact in respect of Andhra Pradesh.

The implementation of uniform floor rates by neighbouring States was also reviewed. Andhra Pradesh had been following the floor rates without any deviation with effect from January 2000, as a model State. Karnataka and Maharastra could be persuaded to comply with the floor rates without deviation. Similarly, Pondicherry had now complied with floor rates in respect of a large number of commodities. However, non-compliance persisted in the case of a few commodities.

In respect of Tamil Nadu, the non-compliance affecting Andhra Pradesh is found to be in vegetable oils, hosiery goods, plastic articles and stainless goods.

The matter had been brought to the notice of Union Finance Ministry and the National Institute of Public Finance and Policy. The deadline for compliance is August 14 by the empowered committees of State Finance Ministers.

The Commissioner of Commercial Taxes, Mr. N. Ramesh Kumar, informed the meeting that the growth trends, as desired, would be analysed and diligent efforts would be made by giving no scope for leakages.

The Principal Secretary (Finance), Mr. S. K. Arora, the Principal Secretary, Transport, Roads and Buildings, Mr. J. Rambabu, the Finance Secretary, Mrs. Preeti Sudan, were present.

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