The Hindu : Kerala / Thiruvananthapuram News : Isaac plans series of steps to improve tax collection

Online edition of India's National Newspaper
Monday, Oct 29, 2007
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Kerala

Kerala - Thiruvananthapuram

Isaac plans series of steps to improve tax collection

Girish Menon

‘From Walayar to Ernakulam’ campaign in November

Objective is to establish combined check-posts
Minister promises to set up check-post plazas

Thiruvananthapuram: Finance Minister T.M. Thomas Isaac is preparing to roll out the second phase of the campaign against corruption and social audit at Walayar by introducing a series of short- and long-term measures to improve tax collection under the value-added tax (VAT) regime.

The Minister has promised to encourage e-filing for goods vehicles, giving those who opt it priority of passage at the Walayar check-post. This will be extended to other check-posts that will be soon brought under a concerted drive similar to the “corruption-free Walayar” campaign.

In November, Dr. Isaac has decided to launch a special campaign in Ernakulam district to utilise the benefits accruing from check-post updating and systemic changes introduced.

Named “From Walayar to Ernakulam,” the experiment seeks to ensure scientific scrutiny and audit of tax returns filed by traders, building on the strength of information available from the check-posts about goods that have come from other States.

The Finance Department will streamline the work flow at the check-posts. This will involve entrusting tax officials with individual tasks, such as weighing goods and accounts inspection. Dr. Isaac plans to coordinate the activities of the check-posts of various departments to reduce the skulduggery faced by vehicles.

To combine work

The Finance Department, while accepting the need for separate inspections by various departments, has identified certain areas where activities can be combined. As a short-term measure, targeted for completion by February 2008, it has suggested weighing of vehicles and excise inspections at one place after data entry of vehicle and driver identification. It has also suggested introduction of automation at the check-posts by installing automatic weighing machines, cranes and so on to shift goods for inspection. The department has taken steps to electronically link all check-posts in the State and make available information of vehicle and driver identification to all. The long-term objective is to establish combined check-posts. Dr. Isaac has promised to set up check-post plazas.

The Finance Department will soon implement Kitco’s master-plan at Walayar and has issued orders for acquiring 12 hectares of land to be developed after addressing local concerns. The plaza will be ready by 2010, department sources say.

Biggest challenge

But the biggest challenge that Dr. Isaac will face is in showing results from his check-post reforms. There has been no perceptible rise in commercial tax inflow from the check-posts mainly because these are the first point in the VAT regime. According to the department, 90 per cent of the goods are entered at this point, providing the department actual accounts. To utilise this advantage, the Finance Department has promised to improve scrutiny of tax returns and audit, two main components of the VAT system.

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