Kerala - Kozhikode   

Isaac hopeful of more VAT revenue

Kozhikode: Finance Minister T.M. Thomas Isaac has said that the government expects a 30 per cent growth in the collection of Value Added Tax (VAT) this year by strengthening the auditing system with the support of trained officials.

Dr. Isaac told presspersons here on Monday that the checking mechanism would concentrate on the merchant fraternity to ensure more accuracy in the VAT returns submitted by them to the government. “Now, the merchant themselves prepare the VAT details being submitted to the government by altering the actual value of the products they purchase and sell. With the wrong furnishing of details, the government lost around Rs.382 crore during the last fiscal alone,” he said. “Hereafter, the details of VAT submitted by the merchants would be brought under scientific checking.”

Dr. Isaac said officials in the field had been given special training to carry out the systematic checking.

He said that none of the taxes would be increased to increase the revenue.

Dr. Isaac said the e-tendering system would become operational in the State within two-and-a-half months. “Hereafter, the tender forms can be downloaded from the web and submitted to the government through postal service or approved courier network,” he said.

He said the process would put an end to the practice of granting tender excess, sums in addition to those specified in the tenders, on various pretexts, mainly cost escalation. Contractors would be fined if the contract period is sought to be extended by three months and request for further extension would result in termination of the agreement.

Welfare pensions

Dr. Isaac said welfare pensions up to the month of September would be paid in advance during the Onam season. “The government had plans to extend up to 12 months' pension at one go, but, it was later put off to avoid the chances of squandering of the money by the beneficiaries in the spirit of the festive season,” he said.

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