Date:19/12/2006 URL: http://www.thehindu.com/2006/12/19/stories/2006121901630500.htm

Kerala - Alappuzha

State to collect advance tax, says Finance Minister

Staff Reporter

Instead of entry tax annulled by High Court Instead of entry tax annulled by High Court

ALAPPUZHA: The State Government will levy advance tax on goods being brought into the State from other States in the place of entry tax, which was annulled by the Kerala High Court on Monday, Finance Minister T.M. Thomas Isaac has said.

Addressing a press conference here on Monday, Mr. Isaac said the Government would file an appeal before the Supreme Court against the High Court order.

He said the Finance Bill passed by the Assembly this year had provisions to collect advance tax. The Government would immediately issue a notification explaining the details of the proposed advance tax. Mr. Isaac said the High Court order would adversely affect the move of the Government to speed up tax collection and maximize it. However, he said, he was yet to receive a copy of the High Court order.

The Minister said the Government would enact a new law to collect entry tax.

The Government had collected Rs.190 crore as entry tax last year and was expecting to collect Rs.250-300 crore as entry tax this year.