THIRUVANANTHAPURAM: Revenue from Value Added Tax (VAT) has increased by 16.64 per cent in Thiruvananthapuram in the first four months of this financial year compared to the corresponding period last year.

The revenue up to July last year was Rs. 447.22 crore. The corresponding figure for the same period this year is Rs. 521.65 crore. While Ernakulam tops the chart with an increase of 44.39 per cent and gross collection of Rs.1,224.03 crore, Thiruvananthapuram comes second. Last year up to July, Ernakulam had recorded Rs 847.73 crore. The lowest collection is in Wayanad, Rs. 5.58 crore.

While the total collection for the first four months of this financial year is Rs. 2,410.25 crore, the corresponding figure for the same period in the previous year was Rs. 1,778.26 crore.

The statistics are a part of a report `Sizable increase in collections' published in the August issue of the `Sale Tax Voice' magazine.

The article says the implementation of VAT in a "disciplined and systematic manner" has taken place only from this financial year. The report supports the finding of the Commercial Tax Staff Association that lack of planning in implementing VAT by the former UDF Government had led to chaos and confusion among traders, which eventually led to the failure to the system. The report also criticises the former Tax Commissioner for "unilaterally implementing new procedures there by complicating the process of collecting tax." The Commissioner failed to look into the discontent prevailing among the lower-rung officials over the new procedures. This ultimately aggravated the whole issue there by incurring heavy loss to the State exchequer, the report alleged.

The report says that by increasing the number officials, the department machinery can be made more effective and the amount collected doubled. Introducing lottery tickets alone would not persuade a trader to issue a bill. There should be a monitoring mechanism to expose sales that take place without issuing proper bills. Similarly smuggling and tax evasion through border byroutes should be prevented. The role of local bodies in curbing this unethical practice is doubtful as the local bodies themselves are unable to collect the taxes due to them.

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