Income From Taxes Reduced: State to Financial Crisis


Thiruvananthapuram:Reports says the state is moving on to serious financial crisis.The situation is due to the drastic reduction in commercial taxes. Though the budget has increased the tax rates ,the income from taxes has not increased.In the first quarter the growth was only 17.2 %. The reduction in first quarter is Rs. 14600 million.The situation is very critical and will effect the programmes adversely says experts.
The expected income through tax collection never realized in any of the 12 districts.Since the inflation is high,the reduction in income from commercial taxes will effect badly.As in last two budgets,the tax on goods has been increased form 1 % to 5%. So by that itself the government expected growth to go till 24%. But,though this is festive season the growth is only 17.72% .Beverages Corporation is remitting the whole of its tax collected on total liquor sales in the state to Trivandrum district. Because of that the tax income in the district has gone up. After Trivandrum,Malappuram District collected the tax income expected.
Though the price of petroleum products went up, tax other than VAT did not increase much.The reason was the increase in tax evasion and tax avoidance through check posts and others. Another main reason is the failure of anti corruption check posts established by last government points out the commercial tax officers themselves.The reason for this failure is not modernizing the offices and in adequate number of staff evidences the reports. If the rupee depreciation in value effects the trade the reduction in tax income also will continue

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