Handle tax evaders strictly, says govt
The city administration has been purportedly facing a shortfall of around 1,200 crore this financial year
The Delhi’s Aam Aadmi Party government has directed the city administration to deal with traders, who are evading taxes, with a firm hand. The directive comes after the state government has purportedly suffered a shortfall in revenue collection of about ` 1,200 crore in the current financial year.
According to senior revenue officials, some traders seemingly have cut back tax payments following the government’s announcement that the raids would be done away with, and, there won’t be any harassment from officials, if the private entities “voluntarily” paid their taxes.
“But this deal has been seemingly misused by some traders, due to which there have been fall in tax collections.”
The official said that deputy chief minister Manish Sisodia has issued a directive to the trade and taxes departments to identify such traders, and initiate action against them. “Mr Sisodia has, however, cautioned that only on full certainty should raids be conducted so that no harass- ment is faced by those who are duly paying taxes.”
The city administration has been purportedly facing a shortfall of around ` 1,200 crore from the annual target of ` 18,500 crore this financial year. In a populist move, chief minister Arvind Kejriwal had announcement that he would end the raid culture in the national capital. “This has seemingly had a negative effect as some traders have stopped depositing their taxes voluntarily. There is always a section of traders who would do anything to evade taxes,” a trade and taxes department official noted, adding that the city’s finance minister has asked the officers to deal with such traders “with a firm hand to send a strong message.”
The AAP administration is eyeing traders, particularly importers of electronic gadgets and other con- sumer items that are still out of the Delhi government’s tax net. Traders in Gaffar Market in Karol Bagh, Nehru Place in South Delhi and Palika Bazar — which are hubs of imported electronic gadgets like laptops, phones, cameras and beauty products, are likely to come under the scanner of the city’s VAT department.
The AAP government is also contemplating on a proposal to seek advance tax from the big taxpayers — a practice which is not considered financially healthy as it may impact the collections in the next fiscal. “The proposal is still under considered, and a decision in this regard is expected soon.”
During the recently- concluded Delhi Assembly Session, the chief minister told the House that there has been a shortfall of ` 4,500 crore in revenue this fiscal, and, renewed his appeal to traders for depositing taxes voluntarily. Mr Kejriwal also hinted at starting an Internetbased system wherein the department will put all information on suspected tax defaulters and call such traders to office for giving explanations.