The Hindu : Kerala / Thiruvananthapuram News : CAG reports loss in tax collection

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Tuesday, Mar 18, 2008
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Kerala - Thiruvananthapuram

CAG reports loss in tax collection

Special Correspondent

THIRUVANANTHAPURAM: Test check of records has revealed a revenue loss of Rs.593.46 crore to the exchequer due to irregularities in collecting commercial taxes, State excise and levies of other government departments, according to the CAG’s report on revenue receipts for 2006-07 tabled in the Assembly on Monday.

The revenue loss comes from 1,448 cases. Of these, 1,004 cases, involving a revenue loss of Rs.309.17 crore, relate to the Commercial Taxes Department.

The CAG categorised the cases under various heads such as ‘incorrect grant of exemption,’ ‘non/short levy of interest,’ ‘incorrect computation of tax,’ ‘underassessment of turnover,’ ‘application of incorrect rate of tax,’ ‘non-levy of penalty,’ etc.

The total revenue receipts of the State government in 2006-07 amounted to Rs.18,186.62 crore against a sum of Rs.15,294.53 crore for the previous year. Seventy-one per cent of this came from State’s own taxes (Rs.11,941.82 crore) and non-tax income (Rs.937.57 crore).The balance 29 per cent was received from the Centre as State’s share of divisible Union taxes (Rs.3,212.04 crore) and grants-in-aid (Rs.2,095.19 crore).

Compared to the previous year, revenue from taxes increased by 22.12 per cent in 2006-07, while that from non-taxes decreased by 2.23 per cent. Collection of almost all categories of taxes and levies such as the sales tax, State excise, stamp duties and vehicle tax showed a healthy upward trend.

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