Tougher measures to tackle tax evasion in Kerala
State will implement 12 new projects to improve financial situation
Thiruvananthapuram: Kerala Finance Minister T M Thomas Isaac on Wednesday said that the government will devise strong measures to curb tax evasion.
The Minister said that the government will also take steps to stop the practice of getting stay orders to evade tax. The Walayar check-post will be made corruption-free, he said during the question answer session in the Assembly.
Isaac said the new measures are a prelude to the government’s decision to bring out a white paper on the present financial situation of the state.
Asserting that he is not against the GST bill, Isaac said concerns regarding some of the provisions remained. Talks are on to formulate a legislation to facilitate real time bill uploading by traders.
“It is not just the slowdown in economic growth that is the reason behind the current financial crisis. Instead, corruption, unnecessary expenditures and drop in tax revenue have also contributed to this.”
The state’s economy grew by just 7 percent last financial year. The minister said that 12 new projects will be implemented with an aim to increase tax revenue, check corruption, increase efficiency and increase consumer awareness.
More big projects like Kochi Metro and investments will be brought to Kerala and the details will be presented in the interim budget.
The minister said that tax arrears worth Rs 12,608 crore is yet to be collected, of which Rs 7,692 crore is under dispute. He said he cannot answer as to why the rest of the arrears were not recovered yet.
A major part of the government’s revenue is spent on salaries and pensions. Therefore, the government is formulating policies to check corruption and increase revenue, he added.
