Kerala - Thiruvananthapuram   

Turnover tax on retail chains soon

THIRUVANANTHAPURAM: The Government proposes to introduce a turnover tax on chain multi-product retail companies, Finance Minister T.M. Thomas Isaac announced in the Assembly on Wednesday.

Replying to the debate on the supplementary demands for grants for the current year, the Minister said that the details such as the lower turnover limit for the tax were being worked out.

Dr. Isaac also said that norms would be drawn up for the local self-governments on permitting such retail chains in their jurisdiction.

He announced that the Government was willing to withdraw the tax on life saving drugs if the companies were willing to specify separate maximum retail price (MRP) for Kerala. Now the MRP was inclusive of taxes as per the directives of the Union Government.

He said corruption would be totally eliminated at the Walayar check post through monthly checks and other measures from August 15. Data from the check posts would be computerised. “Journalists can do sting operations to see whether corruption is eliminated.” The Government was planning to increase revenues through this and other measures. Revenue from stamp duty was expected to go up by Rs.171 crores this year.

The Minister said the Government was examining in detail the irregularities that had taken place in the Public Works Department during three years ending May 2006. More than 5,000 works had been tendered during this period without tenders. In Ernakulam district, 475 works costing Rs.13 crore were awarded in connection with the President’s visit. Administrative sanction had been given to projects costing Rs.747 crore against a budget provision of Rs.134 crore. There was not even a token provision for works costing Rs.171 crore. Tenders were waived for 76 works costing Rs. 210 crore. When the Public Works Secretary objected to 16 works, the then Public Works Minister had over-ruled the objections. Even when tenders were called, tender excesses and revision of contracts were allowed on various grounds. The Government proposed action against those responsible for the irregularities, including politicians.

He said that various public works were remaining incomplete after spending a total of about Rs.5,000 crore. The interest loss on such investments was substantial. He was in favour of administrative reforms to speed up implementation of projects, but procedures needed to be followed, he added.

Public Works Minister T.U. Kurvilla said the repair of roads damaged during monsoon would require Rs.328 crore whereas the budge provision was only around Rs.25 crore.

While works could be started, he was hoping for Central assistance for completion of the works.

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